The market sold off strongly last week Wednesday, but only for the morning. This was an opportunity for the market to reset, find a bottom and allow buyers with fresh capital to come in. 


The ALSI future came within a couple points of its 200-week moving average, a level which it has bounced from strongly since 2014. Its seen a peak to trough pull back of over 14%, that’s a healthy correction and currently trading a little over 9% down from it’s recent high. 


Globally, investors feel a trade war that could impact corporate profits, this is creating uncertainty and we believe the potential  for a “Trade War” should be resolved more amicabily. 


This volitile period appears to have resolved to the upside, which we feel is bullish for a run to previous highs.  


The week ahead: 

Last week’s movers and shakers… 

Best Performers: RES 18.7%, IAP 9.5%, MUR 8%, SAP 6.7%, REI 6.3% 

Worst Performers: TOR -12%, SLM -6.6%, SNH -6.1%, DRD -6.1%, DTC -5.2% 


Other Economic data releases of interest… 


One to Buy 


MTN buy at support.   


For two years MTN has been trading in a range between R116 and R135. Trading this range has been very rewarding. The outlook for MTN has been improving with new management, resolution of Nigerian issues and continued expansion in all operating territories of their network and clients base 


Buy MTN below R117,50, with initial target of R124,50 and Stop Loss of R113,75, for an expected return of 6% on shares or 50% on margin. 


Short term Ideas 


Long Term Ideas