Capio Capital Market Overview and trade Ideas Most Asian markets traded in positive territory this morning; however the Nikkei lost almost 2%. Tech stocks are following their US counterparts higher. A stronger Yen saw exporters come under pressure with the Nikkei seeing its 3rd day of losses. Comments by the central bank governor suggested no need for additional stimulus at present. Chinese real estate shares rose sharply after Agile Property saw sales last month rise over 40%. In Australia, retailer, David Jones, grabbed the headlines after accepting South Africa’s Woolworths bid of A$4 a share. US stocks ended the day slightly up in choppy trading as renewed tensions in Ukraine weighed on global markets. Utilities & consumer discretionary stocks leading the S&P. Alcoa kicked off the 1st Qtr earnings season after the closing bell with the miner’s revenue coming in below expectations. Adjusted earnings however topped estimates. Early in the day, technology counters were sold off but staged a recovery with the Nasdaq up 0.9%. Facebook, Google & Yahoo gained over 2%. First Solar & Yelp outshined on the S&P on the back of a broker upgrade while Gigamon & James River Coal sank after the former cut its revenue outlook while the latter filed for Chapter 11 Bankruptcy protection. European markets came under pressure for a second day as investors focused on increased tensions between Russia and the US. Shares of Sports Direct International fell after reports showed the company’s founder sold 4% of its stake in the company. Declines in insurance counters hurting the FTSE100. Gains in metal prices helped mining counters advance with better than expected UK industrial output numbers failing to lift the London bourse. Suedzucker lost ground after the company expects profits to fall 70%. AB Foods also dropped after the news. The local market outperformed with the Top40 closing up +0.49%. All 3 major indices managing to close in positive territory. Higher commodity prices helped lift the mining sector with ASR leading the pack. Investors took a liking to the retailers with TRU & TFG up over 4%. In the financials space, banks outperformed insurers. The Property sector closed slightly up despite NEP weighing on the index after the stock fell after the announcement of an accelerated bookbuild. Value traded at 5pm was around R 16.2bn with the currency at R 10.43 vs. the USD. Trade Ideas 1) Short: WHL off R73. Acquisition of an Australian company at a premium might put pressure on the stock. Stock has resistance at the R74 level. Short term target price of R68, stoploss at R75. 2) Long: BIL off R337, stock has support at the R337 level. Stock is up 1.36% in AUS. Short term target price of R348, stoploss at R333.
Posted on: Wed, 09 Apr 2014 07:20:07 +0000
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