Building strength ahead of a breakout

The market has remained robust as Trump shifted most of his focus away from a potential trade war with China to Syria. 

 

This has helped the market bump higher as it tries to break above its 200-day moving average. The market remains in a bullish phase, while a sustained break above the 200-day moving average around 50,800 could see the market take another rally towards its 2018 high. 

 

Long term investors should buy the dips until it breaks above this level. 

 

For ideas on what to add to your portfolio take a look at our longer-term ideas below. 

 

The week ahead: 

  • Local economic data releases: CPI, Retail trade sales (18/04) 
  • Results Due: CMH, ZED, ALP, PEM, CLS, PIK, KST, PSG 
  • LDT (17/04): ACG, ASHINF, ASHMID, ASHT40, AVI, BRN, BRT CCO, CPI, CRP, ELR, EXX, IBRP1, ILRP2, ITU, MTA, MMG, RCL, REM, TLM, WBO 

Last week’s movers and shakers… 

**picture

 

 

 

Best Performers: MMG 11.9%, TOR 10.2%, S32 9.4%, DRD 9%, FFB and DTC 8.1% 

Worst Performers: TSX -32.9%, SNH -30.3%, HAR -12%, HMN -11%, SPP -6.5% 

 

Other Economic data releases of interest… 

  • Tuesday: Average Earnings Index (UK) 
  • Wednesday: CPI (UK); BOC Monetary Policy, Overnight Rate, (CAN); Crude Oil Inventories (USA); CPI (NZL); Unemployment Rate (AUS) 
  • Thursday: Retail Sales (UK) 
  • Friday: CPI (CAN) 

 

One to Buy 

 

Mediclinic Buy the Bounce 

 

Mediclinic is expected to issue a trading statement on Thursday, which will invigorate investor sentiment after a 50% fall over the past two years. 

 

It will be important to see what improvements have been made in the UAE after relaxation of regulation last year. Any hints of a significant turn around in the near term will see the share start a long term run higher. 

 

Buy MEI below R102.50 for a move above R120. 

 

Short term Ideas 

  • MTN: Buy Below R117.50, target R124.50 and Stop Loss at R113.75 
  • Sibanye Stillwater: Long at R11.50, target remains at R13.50 

 

Long Term Ideas 

  • Shoprite: Finding support, buy below R257.50 with a target of R285. 
  • Anglo: Accumulate below R285 
  • Sasol: Up over 5%, buy dips below R400 
  • Aspen: Accumulate below R260. 
  • Sygnia: Add below R12.50. 
  • Santova:  Buy below R3.00.  
  • Merafe: Accumulate below R1.55. Special Dividend on the cards. 
  • Jubilee: Bottoming out. Hold. 
  • MTN: Buy Dips below R120.00. 
  • Glencore: Diversified Commodity exposure. Hold 
  • Wescoal: Long term buy. Add below R1.80 
  • Naspers: Increase exposure below R3,000.  

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