In this Issue:
Bidcorp rally runs out of steam
Featured Offshore Structured Products – 100% downside protection
The Week Ahead
Other Economic data releases of interest
Bidcorp rally runs out of steam
Bidcorp’s upside breakout failed as the R320 area limited advances for the third time since it first hit it in 2017. The share price has pulled back over 3% with further advances unlikely, investors should look to lock in profits as the share price is on a standard deviation of 2.4. This signals a pullback is likely, and a retracement has started.
As you can see in the below chart, a pull back should find support around the R282.50 level. A longer-term target would be at R252.50
Sell Bidcorp above R315.00, traders can short the share above R315.00 and make around 10% profit as it falls to the R285 area.
Featured Offshore Structured Products
There is great interest in the latest structured products that give offshore exposure while guaranteeing the worst case is a little more than your money back. With all the uncertainty in the word, diversifying into structured investments provides a safe haven.
Below are two structured products that we like at the moment and are closing soon.
Structured Product 1: Offshore Enhanced Growth
The enhanced growth structured product gives you a minimum return of 18%, 100% downside protection and flexibility to include it in retirement portfolios. And it’s based on a diversified offshore index.
Depending on the parameters when structuring, you can receive up to 5 times the index return, giving you enhanced growth with less risk.
Most of the tax is taken care of it within the product so you will receive a net of tax payment.
Minimum investment is R100,000
Structured Product 2: Geared USD Return
Get diversified exposure to the S&P 500, EuroStoxx and Nikkie with a guarantee of 103% in USD through this listed product. You have 100% downside protection. The targeted duration is 3.8 years. You will receive double the index return, but its capped at a maximum total return of 34%.
Minimum investment is USD18,000.
If you are interested in any of the above structured products, please call your Finova Adviser or contact us here.
The week ahead:
- Local: Quarterly Employment Statistics (25/06); Producer Price Index (27/06)
- Results Due: EPS, ETO, IVT, OMN, SNH, WSL (25/06); PPC (26/06); ART (27/06); CSG, DTA, HDC, NCS, PBG, SEB, SEP (28/06)
- LDT (25/06): BTI, CLS, DCCUS2, LBHP, OCE, PFG, SNV, TBS, VLE, YYLBEE
- Special/Share Premium Dividend: TBS (25/06)
Other Economic data releases of interest…
- Tuesday: RBA Assist Gov Bullock Speaks (AUS); OPEC Meetings (All); FOMC Member Williams Speaks; CB Consumer Confidence; Fed Chair Powell Speaks (USA); Official Cash Rate, RBNZ Rate Statement (NZL)
- Wednesday: Core Durable Goods (USA); Inflation Report Hearings (UK); ANZ Business Confidence (NZL)
- Thursday: Final GDP (USA); German Prelim CPI (EU); G20 Meetings (All)
- Friday: Core PCE Price Index, Chicago PMI (USA); Current Account, Final GDP (UK); CPI Flash Estimate (EU); GDP, BOC Business Outlook Survey (CAN); Manufacturing PMI (CNY); G20 Meetings (All)
Do you have an RA policy? Are you nearing retirement? Do you know how your investments are performing? Are you still paying high fees on your long-term savings?
As a leading provider of new generation investment solutions for pre and post retirement, we can reduce your fees by 60% or more!!
To ensure you have the best solution contact your Finova Adviser or contact us here.