Capio Capital Market Overview and Trade Ideas US stocks closed firmer for the first time this week, with oil producers gaining as the price of crude closed above $110 a barrel. Chevron (+2.5%) and Exxon Mobil (+2.3%) provided the biggest lift to the Dow and S&P500. Gold miners lost ground as the gold price eased lower. Newmont Mining Corp lost 2.4^ while Barrick Gold Corp fell 1.7%. A better than expected home sales reported also supported the market although trading volume was thin. Asian markets are trading firmer this morning, following Wall Street higher. Markets are however still cautious over concerns about the conflict in Syria. In Japan, as in other world markets, oil stocks outperformed with Inpex Corp and Japan Petroleum Exploration Co rising 5.4% and 4.8% respectively. Australian stocks are flat as they were also cautious ahead of their elections next week. Financials are weaker, with Australia and New Zealand Banking Group falling over 1%. Quantas Airways rose over 12% after reporting a solid set of results. Mining stocks, BHP Billiton (+1.35%) and Rio Tinto (+0.34%) are both trading higher this morning. European stocks continued the Tuesday sell off and closed lower on Wednesday as investors were concerned about the potential military strike action against Syria. In London, Energy Stocks were firmer, as BP (+1.2%) and Royal Dutch Shell (+2%) closed firmer as oil prices remained strong. Bank reversed earlier loses after the Bank of England said it would ease liquidity requirements for banks. Barclays, Lloyds Banking Group and Royal bank of Scotland all gained more than 1 % .Airline companies across Europe fell as AIG (-4.5%), Easy Jet (-1.8%), Lufthansa(-3.19%) and Continental (-4.07%) were all affected by the rise in oil prices. Ryanair (-3.5%) said it would appeal a ruling by the UK Competition Commission that the low-cost airline would be required to sell its 29.8 % stake in Aer Lingus Group, down to 5%. Aer Lingus fell 5.81 %. The JSE followed emerging markers lower on Wednesday and closed down 1.8%. Despite a stronger Gold price and a weaker rand, Gold stocks fell sharply as potential strike action at various gold producers weighed on the market. Discovery (-9.09%) closed sharply lower after releasing a disappointing trading statement which reported that headline earnings were expected to between 0 and 10% lower than the previous corresponding period. Sasol (+0.68%) had another good d day, as oil prices continued to rise amid worries that a possible military strike in Syria could hurt Middle Eastern crude supply. Steinhoff (+3.88%) rose after releasing a positive trading statement. The rand was flat during afternoon trade on Wednesday after recovering from its weakest intraday level as exporter demand helped to curb further losses. This morning the rand is trading at USDZAR10.3032, EURZAR13.7341 and GBPZAR16.0026 Trade Ideas 1) Long: WHL close to R60.00, stock has shown support at the R60 level. Stock came out with results marginally beating forecasts. We are buyers and traders at these levels. 2) Long: SHP near R158, stock has shown support at the R158 level. Stock has looked strong in recent weak market conditions. We have a short term target price of R165.
Posted on: Thu, 29 Aug 2013 07:09:51 +0000
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