ALUMA CAPITAL FSP 46449

Online Trading Specialist

THE MORNING NOTE

The Morning Note
19 March 2019 | www.alumacapital.co.za | Research@alumacapital.co.za

SA markets closed in the green yesterday, buoyed by broad based gains in platinum mining and banking sector stocks.118 stocks closed higher, 108 closed lower and 195 were unchanged. The All Share rose 1.3% to close at 56769.86. AMPLATS (up 3.03% to 80117) was the biggest gainer amongst the large caps and MC GROUP (down 3.55% to 12035) the biggest loser. Platinum miners, Northam Platinum, Anglo American Platinum and Impala Platinum Holdings rose 4.3%, 3.0% and 2.0%, respectively. Bankers, Absa Group and Capitec Bank Holdings gained 1.1% and 1.0%, respectively. Steinhoff International Holdings soared 7.1%, after an overview of PwC’s forensic investigations into the company’s past dealings suggested fewer-than-expected fictitious transactions. Moreover, tobacco company, British American Tobacco advanced 2.8%. On the other hand, Advtech declined 1.1%, even though the company announced a significant increase in its FY18 revenue.

What to watch today

  • EC ZEW Survey Expectation (12:00)
  • US Factory Orders (16:00)

Economics and markets

  • Global equity stocks trend higher ahead of Fed meeting.      
  • Rand fails to benefit from improved risk sentiment as      investors worry about the impact of load-shedding on growth.
  • May’s Brexit deal faces another hurdle.
  • USD/ZAR opens at 14.45; EUR/ZAR is at 16.38, GBP/ZAR at      19.14 and CNY/ZAR at 2.15.

Global equity stocks closed Monday’s trading session slightly firmer ahead of the Fed policy meeting on Wednesday. While it is widely expected that the Fed will keep rates unchanged on Wednesday, the key focus will be on the path of interest rates as well as details on plans to stop its balance sheet wind-down.

Corporate Updates

Sun International Limited/South Africa: The resort hotel chain and casino operator, in its FY18 results, indicated that its revenue rose to R3.22bn from R3.02bn posted in the corresponding period of the previous year. Its diluted loss per share stood at 6.00c compared with 243.00c recorded in the same period of the prior year. The company has not declared a dividend for the period.

Advtech Limited: The investment holding company, in its FY18 results, reported that its revenue advanced 11.0% from the same period of the preceding year to R4.39bn. Its diluted EPS stood at 74.10c, compared with 68.60c recorded in the corresponding period of the previous year. The company has declared a full year dividend of 30.00c per share.

Ascendis Health Limited: The manufacturer and distributor of healthcare products, in its 1H19 results, revealed that its revenue advanced to R3.96bn from R3.85bn posted in the same period of the preceding year. Its diluted EPS stood at 42.30c, compared with 41.10c recorded in the corresponding period of the previous year. The company has not declared an interim dividend for the period.

Hulamin Limited: The aluminium semi-fabricator, in its revised FY18 trading statement, indicated that the company expects HEPS to be 91.00c per share, which is 4.0% lower compared with the same period of the previous year. Moreover, the company expects loss per share to be 242.00c.

Grand Parade Investments Limited: The investment holding company, in its 1H19 results, stated that its revenue increased to R707.33mn from R554.17mn posted in the corresponding period of the previous year. Its diluted EPS rose to 8.39c from 6.97c recorded in the same period of the prior year.

AdvTech under pressure from emigration and tough economy: Private education group, AdvTech says its performance in SA continues to be negatively affected by financial pressure on parents, as well as emigration.

India’s competition watchdog targets Glencore and two other companies: India’s antitrust watchdog raided units of global commodities trader Glencore and two other companies in Mumbai on Saturday in an inquiry into alleged collusion on the price of pulses, four sources with knowledge of the raids told Reuters.

Steinhoff Ex-Chair Christo Wiese open to talks over $4.00bn claim: Former Steinhoff Chair and top shareholder Christo Wiese is open to negotiations over his $4.00bn claim against the company, he said on Monday, days after Steinhoff released a report that showed the scale of a devastating accounting fraud.

Ascendis considers an equity raise to tackle debt: Ascendis Health, which is looking to raise funds by selling assets, is also considering another equity capital raise to help it reduce its hefty debt burden.

Bell Equipment says Zimbabwe's currency crisis dented profits: Bell Equipment, which makes trucks for the mining sector, says Zimbabwe’s currency crisis took a bite out of its 2018 profits.

Sun International cuts Sun City valuation by R306.00mn after loss: Sun International has reduced the value of its flagship asset, Sun City, by R306.00mn after that unit slipped into an operating loss in 2018.

Source: Bloomberg, Sherenet, RMB & Anchor Capital 

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Increase in Value Added Tax (VAT)

The National Treasury announced an increase in Value Added Tax (VAT) from 14% to 15% effective 1 April, 2018.

As a result some of our services subject to VAT will increase on the 1st April 2018.

Changing of Withdrawals Process

Dear Valued Client,
 
We are in the process of releasing our automated withdrawals module on Tradedesk.
 
From the 22nd February 2018, clients will need to login to the Tradedesk portal in order to request a withdrawal.

Please follow this link for a user guide: How to request a withdrawal from your trading account
 
If you have any questions please contact the support team.

Android Mobile Application Update 

We are pleased to advise that we have released an updated ProtraderSA application on the Google play store.
 
Clients using android devices should please update the application at your earliest convenience.

 

Aluma Capital clients received the following high-probability trade idea via SMS

"Learn the art of patience. Apply discipline to your thoughts when they become anxious over the outcome of a goal. Impatience breeds anxiety, fear, discouragement and failure. Patience creates confidence, decisiveness, and a rational outlook, which eventually leads to success." Adams

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