ALUMA CAPITAL FSP 46449

Online Trading Specialist

THE MORNING NOTE

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

South African markets closed in the green yesterday, buoyed by gains in platinum and gold mining sector stocks. Platinum miners, Impala Platinum Holdings and Northam Platinum advanced 4.2% and 2.8%, respectively. Peer, Anglo American Platinum rose 3.4%, after the company reported an increase in its 2Q19 total platinum group metals (PGM) production. AngloGold Ashanti, Gold Fields and Sibanye Gold gained 3.4%, 3.2% and 3.0%, respectively. Tobacco company, British American Tobacco surged 5.9%. Banking firms, Nedbank Group, Capitec Bank Holdings and FirstRand gained 1.7%, 1.2% and 0.4%, respectively. On the other hand, retailer, Massmart Holdings declined 0.6%. Market heavyweight, Naspers dropped 0.3%, tracking losses in its Hong Kong listed subsidiary, Tencent Holdings. The JSE All Share index advanced 0.4% to close at 57,872.53.

Economics and markets

·       US: Prelim UoM consumer sentiment (17:00) Exp 98.6

·       SA: Retail trading updates

Stocks trading ex Dividend (17 July)

·       Alexander Forbes (AFH) (R0.12 ordinary + R0.30 special)

·       Delta EMD Ltd (DTA) (R0.70)

·       Foschini Group (TFG) (R4.50)

·       Lewis Group (LEW) (R1.29)

·       Nictus Ltd (NCS) (R0.04)

·       Primeserv Group Ltd (PMV) (R0.03)

Corporate Updates

Anglo American Platinum Limited: The platinum mining company, in its 2Q19 production report, stated that total PGM production rose 1.0% and owned managed mines PGM production decreased by 4.0% to 633,600oz due to lower production from Mogalakwena and Mototolo. Further, PGM sales volume were in line with the refined production but down by 8.0% year-on-year due to 154,400 4Eoz returned through toll arrangements.

Kumba Iron Ore Limited: The iron ore mining company, in its 1H19 production and sales report, indicated that total production fell by 11.0%, due to plant maintenance. Total sales rose 1.0% to 21.30Mt, reflecting an improvement in rail performance, allowing the company to meet sustained demand for premium quality products. It expects its HEPS to be between R30.52 and R32.10 and its EPS to be between R30.41 and R31.98.

South32 Limited: The diversified metal and mining company in its quarterly report ending June 2019, revealed that it achieved record production at Hillside Aluminium and strong performance at Mozal Aluminium, despite an increase in revenue load-shedding events. Production at Worsley Alumina rose by 12.0% due to an uplift in calciner availability and production at South Africa Energy Coal was lower during the period.

Liberty Holdings Limited: The financial services company, in its 1H19 trading statement, stated that it expects its EPS to be between 664.9c and 721.3c and its HEPS is likely to be between 704.4c and 760.7c. Further, progress is being made towards rebuilding a competitive and sustainable business, resulting in improved operating earnings.

Anglo lowers diamond and iron output but remains on track overall: Anglo American lowered full-year production targets at two key subsidiaries in diamonds and iron ore but kept its group forecast “broadly” intact.

Liberty earnings surge in the first half as equities recover: Financial services group Liberty Holdings, which provides insurance and investment services, says half-year earnings rose by up to 55.0% as equities rallied in the first six months of 2019.

South32 reviews future of smelter amid higher power prices: Diversified miner South32, which was unbundled from BHP in 2015, is reviewing its manganese alloy smelter, which employs 300 people, as analysts warn that SA’s soaring power prices are making the sector uncompetitive.

Ratings agency shrugs off AECI profit warning: Ratings agency Global Credit Ratings (GCR) brushed aside AECI’s warning of lower interim earnings and maintained a positive outlook on the listed manufacturer of mining explosives and chemicals.

SAB gets go ahead for SA rights to Smirnoff’s ready-to-drink brands: The Competition Commission has given the conditional go-ahead for SAB, the local subsidiary of AB InBev, the largest beer group in the world, to acquire the SA rights to Smirnoff’s ready-to-drink (RTD) brands from Diageo.

Kumba’s interim profit trebles on higher iron ore prices: Kumba Iron Ore will report a trebling of interim profit because of higher prices for the steel ingredient.

Strong Asia growth boosts Richemont’s first-quarter sales: The Rupert family-controlled Richemont, which owns the Cartier and Van Cleef & Arpels brands, grew sales by 12.0% in the three months to end-June thanks to strong growth in Asia and rising online sales.

Old Mutual is victimising Moyo, says his legal team: Peter Moyo’s lawyer, Advocate Dali Mpofu, says the axed Old Mutual Chief Executive Officer (CEO) is a victim of the insurer’s inability to protect whistle-blowers.

South32 mulls bids for SA coal assets: Australia-based miner South32 says it is considering bids for its coal assets in SA’s Mpumalanga province.

Cartrack shareholders decline buyout offer from CEO: Cartrack, which provides fleet-management and stolen-vehicle-recovery services, says minority shareholders have declined a mandatory offer by the company’s founder and CEO to buy them out.

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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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