ALUMA CAPITAL FSP 46449

Online Trading Specialist

THE MORNING NOTE

The Morning Note
 18 September 2019 | www.alumacapital.co.za | Research@alumacapital.co.za

South African markets closed in the red yesterday, as investors expressed concerns about the effects of drone attack on Saudi oil facilities and pulled down by broad based losses in banking sector stocks. FirstRand, Nedbank Group and Standard Bank Group declined 4.5%, 3.6% and 3.4%, respectively. Sappi plunged 7.0%, after the company fell out of the JSE’s top 40 index, following the listing of Naspers subsidiary, Prosus. Retailers, Shoprite Holdings, Foschini Group and Mr Price Group dropped 4.4%, 3.8% and 3.6%, respectively. Blue Label Telecoms shed 1.0%, after JSE suspended the firm for failure to release its FY19 results. On the other hand, gold miners, Sibanye Gold, AngloGold Ashanti and Harmony Gold Mining gained 6.7%, 3.2% and 2.6%, respectively. Tobacco company, British American Tobacco advanced 1.4%. The JSE All Share index declined 1.7% to close at 56,895.23.

 Economic and Company Data Today:

·       US: Building permits (15:30) Exp 1.31m

·       US: Housing starts (15:30) Exp 1.25m

·       US: FOMC statement and Fed funds rate (21:00) Exp cut 0.25

·       SA: CPI & Retail sales

·       SA: Pan African results 

 Stocks trading EX Dividend : 

·       Adcock Ingram (AIP) (R1.00)

·       Bidvest Group (BVT) (R3.18)

·       Richemont (CFR) (CHF 0.20)

·       Clientelle (CLI) (R1.31)

·       Discovery Pref (DSBP) (R5.08)

·       Foschini Pref (TFGP) (R0.07)

·       HomeChoice Intl (HIL) (R0.87)

·       KAP Industrial (KAP) (R0.23)

·       Motus Holdings (MTH) (R2.50)

·       Old Mutual (OMU) (R0.45)

·       Santam Ltd (SNT) (R3.92)

·       Tower Property Fund (TWR) (R0.37)

·       Woolworths (WHL) (R0.99

 Corporate Updates:

Exxaro Resources Limited: The diversified mining company announced that it has concluded an agreement with Khopoli Investments Ltd wholly owned by the Tata Power Company Ltd to acquire Khopoli’s 50.0% shareholding in Cennergi (Pty) Ltd for an amount of R1.55bn, subject to normal working capital adjustments. Post the conclusion of the agreement, the company will have 100.0% ownership of Cennergi.

Comair takes aircraft maintenance in-house and looks to expand ancillary businesses: The JSE’s only listed aviation company, Comair, which is under new management, is expanding into aircraft maintenance and airport lounges in order to maintain its record of 70 years of uninterrupted profit.

Kabwe’s pollution headache is Jubilee’s big opportunity: Jubilee Metals is on the cusp of starting the production of copper and other base metals, including lead, in Zambia from its Kabwe project.

AB InBev to float Asian business in 2019’s second biggest IPO: AB InBev will kick off a second attempt to spin off its Asian business in Hong Kong with the launch of an initial public offering (IPO) worth up to $6.60bn that could be the world’s second-largest flotation in 2019.

Texton Property Fund postpones financial results: The share price of Texton Property Fund fell 7.8% to R2.95 after the group postponed the release of its full year financial results to Thursday.

Sasfin earnings up by almost third on better credit controls: Financial-services provider Sasfin Holdings said that headline earnings grew by almost a third to R161.00mn in the year to end-June, due to an improved credit:loss ratio and a lower tax bill.

Blue Label at record low as JSE threatens suspension: The share price of Blue Label Telecoms, the largest shareholder of Cell C, fell to a record low after the JSE said it was facing suspension for failing to deliver its financial results.

Sappi slips out of top 40 due to Prosus listing: Sappi, the world’s largest manufacturer of dissolving wood pulp, will fall out of the JSE’s top 40 index due to the listing of Prosus, the new internet subsidiary of market heavyweight Naspers.

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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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