ALUMA CAPITAL FSP 46449

Online Trading Specialist

THE MORNING NOTE

The Morning Note
 11 November 2019 | www.alumacapital.co.za | Research@alumacapital.co.za

South African markets closed in the red on Friday, pulled down by losses in mining sector stocks, amid conflicting reports about the US-China trade war. Gold miners, Gold Fields, Harmony Gold Mining, AngloGold Ashanti and Sibanye Gold declined 6.3%, 4.0%, 2.3% and 2.2%, respectively. Among diversified miners, Glencore and Anglo American fell 1.7% and 1.4%, respectively. Further, Cie Financiere Richemont SA declined 5.7%, after the company reported a double-digit drop in its 1H19 Hong Kong sales figures. On the other hand, packaged-goods company, Tiger Brands surged 6.2%, after the firm announced that it was considering disposing of its value-added meat products business. The JSE all share index fell 1.5% to 56,617.

 Economic and Company Data Today:

·       SA: Vodacom H1 Results (Our already: HEPS +18.9%. Divi 380c + 60c special)

·       SA: Multichoice H1 earnings

·       SA: Raubex 1H20 results

·       UK: Q3 GDP (Exp 1.1% YoY)

·       UK: Trade balance

·       US: Nothing significant

Stocks trading Ex- Dividend : 

  • Atlantic      Leaf Properties (ALP) (GBP0.05)
  • London      Finance and Investment Group Plc (LNP) (GBP0.01)
  • PSG      Group (PSG) (R1.64)
  • Spear      REIT (SEA) (R0.45)

 Corporate Updates:

Cie Financiere Richemont SA: The luxury goods retailer, in its 1H19 results, stated that its revenue increased to EUR7.40bn from EUR6.81bn posted in the corresponding period of the previous year. Its diluted EPS fell 61.6% from the same period of the prior year to EUR1.53.

Gold Fields Limited: The gold mining company, in its 3Q19 operational performance update, stated that gold production fell to 523.00koz, compared with 533.00koz in the same period of the prior year. Revenues excluding Asanko, increased to $1,469.00/oz compared with $1,184.00/oz last year.

Tiger Brands Limited: The packaged goods company announced that as part of the strategic review conducted by the Board in 2017, the role of Value Added Meat Products within the group’s portfolio had been earmarked for further evaluation, given the business’ unique value chain and the perishable nature of its underlying products. Further, all formalities relating to the closure of Deli Foods in Nigeria are expected to be completed within the next few months. The impact of the closure of Deli Foods on Tiger Brands’ net asset value and HEPS is not material.

Reunert Limited: The industrial company, in its FY19 operational update and trading statement, indicated that EPS is expected to be between 466.00c and 515.00c. Further, HEPS is likely to be in the range of 544.00c to 602.00c.

Steinhoff International Holdings: The global retailer provided an update on developments since the implementation of its financial restructuring in August 2019. The company announced that it is considering and evaluating a range of strategic options for the Pepco Group, including a potential public listing. This process remains in its early stages and no definitive decision has been taken with respect to any specific course of action at this point.

Reunert operating profit slides on weak SOEs and infrastructure project cuts: A decrease in electrical infrastructure development and weak financial position of state-owned enterprises (SOEs), dragged down electronics group Reunert’s performance in the year to September resulting in a decrease in operating profit, the group said.

Tiger Brands weighs offers for listeriosis-hit Enterprise: SA’s largest food producer, Tiger Brands, has received several offers for its processed-meats business that was at the centre of the world’s biggest listeriosis outbreak in 2018.

Sephaku’s earnings set to drop on low cement sales and flat prices: Building and construction materials group Sephaku Holdings (SepHold) expects a decline in earnings in the first half of the financial year as low sales and flat prices hurt subsidiary and concrete supplier Métier Mixed Concrete’s net profit.

Resilient REIT is cleared by FSCA: Resilient REIT, which was accused of publishing misleading financial statements, has been cleared by the financial market regulator of any wrongdoing, bringing an end to a scandal that threw the R580.00bn listed property sector into turmoil for two years.

Efficient Group’s HEPS surge after cancelling profit-share scheme: Small-cap financial services company Efficient Group, which may delist from the JSE amid a buyout offer, said that it would return to profit in its year to end-August. This is after the company recovered from cancellation fees from bringing its investment unit in-house.

Gold Fields sticks to production guidance for 2019: Gold Fields stuck to its full-year production guidance, expecting a “strong” end to the year after a small slip in output during the third quarter.

Sephaku swings into a loss as cement sales continue to decline: Building and construction materials group Sephaku Holdings (SepHold) said that it is cautiously optimistic about the next 12 months after the commencement of several civil construction projects.

Richemont sees double-digit sales decline in Hong Kong amid protests: Johann Rupert’s Richemont, the luxury goods group that owns the Cartier brand, said that sales in Hong Kong contracted by double-digits in its six months to end-September due to protests in the wealthy city.

Net1 posts first-quarter loss after Sassa grants shake-up: Financial services and technology group Net1 said that the loss of its social grants contract as well as a migration of grants accounts to the SA Post Office had resulted in a 36.0% decline in revenue for its first-quarter to end-September.


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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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