Rand Hedges in focus as the Rand’s run seems to have ended.

Rand Hedges in focus as the Rand’s run seems to have ended.

The Rand is on the back foot as US treasury yields jumped towards 3%, an important psychological level for investors. 

 

The weaker Rand helped the resources and rand hedge industrials rise yesterday as banks and retailers pulled back.  

  

After a surprisingly strong run, the Rand appears to be heading back to resistance at R12. 48 as anxiety and volatility return to more normalise levels.  

 

The week ahead: 

  • Local economic data releases: CPI, Retail trade sales (18/04) 
  • Results Due: CTK, CIL, NWL (24/04); EFG, RPL, RHB, VUN (25/04); IDQ (26/04) 
  • Ex-Dividend (24/04): GLN, PHM and Various ETFS 

Last week’s movers and shakers… 

 

Best Performers: TSX 53.5%; SNH 20.8%; MEI 15.2%; HMN 12.8%; NTC 11.4% 

Worst Performers: MMG -20.5%; DRD -12.7%; BTI -11.9%; ITU -9.3%; HAR -6.8% 

 

Other Economic data releases of interest… 

  • Tuesday: CB Consumer Confidence 
  • Wednesday: BOC Gov Poloz Speaks (CAN); Crude Oil Inventories (USA) 
  • Thursday: Minimum Bid Rate, ECB Press Conference (EU); Core Durable Goods (USA); Monetary Policy Statement (JP) 
  • Friday: SNB Chairman Jordan Speaks (CHF); Prelim GDP, BOE Gov Carney Speaks (UK) 

 

One to Buy 

 

Global Tech exposure through one ETF 

 

Alphabet’s Q1 earnings beat analyst’s expectations yesterday on both the top and bottom line. This could be a taste of what’s to come from the remained of the tech sector as more of them release results over the coming days. 

 

The scrutiny of social media stocks seems to be abating, and this has provided an entry into the sector.  

 

Stanlibs Tech ETF (ETF5IT) is listed on the JSE and gives you exposure to Apple, Microsoft, Facebook, Alphabet and a host of other tech companies listed. 

 

This is a perfect low-cost ETF giving targeted offshore exposure and would be a good addition to a tax-fee savings account. 

 

Buy ETF5IT below R5. 

 

Short term Ideas 

  • Mediclinic: Jumped as expected, up 15% to R117,00. Move stop loss at R111.95 to lock in a gain of 8% and hold long positions. 
  • MTN: has responded nicely to last week’s call buy call, 4,4% at R122,70. Raise target price to R126,50 and stop loss to R120.5 to lock in 2,5% (ungeared). 
  • 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: Insert stop loss at R420.00 to lock in 5% minimum gain. 
  • Aspen: Accumulate below R260. 
  • Sygnia: Add below R12.50. 
  • Santova:  Buy below R3.00.  
  • Merafe: Accumulate below R1.55. 
  • Jubilee: Bottoming out. Hold. 
  • MTN: Buy Dips below R120.00. 
  • Glencore: Another dividend received. Hold 
  • Wescoal: Long term buy. Add below R1.80 
  • Naspers: Increase exposure below R3,000.  

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