The JSE has remained buoyant after falling due to the ANC’s EWC announcement last week. It’s been range bound since breaking above its previous consolidation phase. A rally into year end, is still on the cards due to several JSE heavy weights earning significant offshore revenue. Stronger global growth and a Rand that is facing headwinds into next year’s elections should see earnings increase after a period of consolidation and contraction. Rand hedges like GLN, APN, MEI, MTN and NPN are all poised for a rally. 


Global Market Summary 

The week ahead: 

Last week’s movers and shakers… 



Best Performers:  TSX 18.2%, SGL 17.5%, TOR 9.7%, HLM 8.7%, ASR 6.9%  

Worst Performers: ADI -16%, SFN -7.6%, IPL -4.2%, CML -4.4%, BAT -4.2% 


Other Economic data releases of interest… 


One to Buy – Long MTN ahead of its Results 


MTN is due to release its results tomorrow. The company hasn’t provided any guidance’s, but we should see continued improvement with management achieving its target of consistent single digit growth. Investors will be looking for more information on the Cyprus sale and delayed Iranian Fibre Capex. 


MTN is typically volatile when results or trading statements are released, and we will try take advantage of that. 


Long MTN at R111.00 for a move to R121.00 but will be looking to take profit above R115.50 if the spike doesn’t hold. Stop loss will be a daily close below R104.00. 


One to Sell – Short AMS after a 13.88% rally in 10 days 


AMS has rallied strongly over the past 10 trading days pushing it to a standard deviation of 2.7. The rally has hit some selling pressure and the share price is about to pull back.  


AMS goes EX-Div for R3.74 today, and naturally the price should fall but I expect the public holiday to catch a few traders bidding up the price thinking its still trading cum-dividend.  


Short AMS at R410.00 for a move to R375.00 in the coming weeks. Place a stop loss at R420.00 


Long Term Ideas 

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