Capio Capital Market Overview and Trade Ideas Asian markets, a weaker yen helped the Nikkei gain over a percent as communication and technology stocks lead the Japanese market higher. The Hang Seng was trading marginally higher as Tencent rebounded from a four day losing streak gaining 4.4% at the time of writing. Chinese real estate companies are extending losses after a developer collapsed raising concern that defaults will start as the economy slows and the government curbs lending. The ASX was up half a percent with resource stocks gaining while gold miners limiting upside as the gold price retreated for the second consecutive day. Bargain hunting and positive industrial production data helped the U.S. market recover some of last week’s losses. The data should that industrial production rose by 0.8% in February the most in six months. The Dow gained 1.1% and the S&P rose 0.9%. Yahoo gained 4% on the back of the news that Alibaba was proceeding with an IPO in the U.S. Yahoo currently owns 24% of the Chinese e-commerce giant. In the news the U.S. announced that it would impose sanctions on Russia as it refuses to recognise the referendum which saw more than 90% of Crimea voters favour joining Russia. European markets bounced back on Monday as merger and acquisition activity dominated the news. The FTSE broke a six day losing streak gaining 0.6%. Vodafone rose 1.7% after agreeing to buy Spanish cable operator Grupo Corporativo Ono SA in a 7.2bn euro transaction. The DAX rose for the second consecutive day gaining 1.4%. The German electric utility company RWE AG gained 1.3% as L1 energy agreed to buy the utilities oil and gas business for 5.1bn euros. In Paris the CAC rallied 1.3%. Ship owner Bourbon rocketed 23% after the owner of 485 vessels received a takeover bid valuing the company at 1.8bn euros. After a slow start the All Share gained momentum in late afternoon trade and managed to close up 0.87% at 46,816.65. Naspers fell for the fourth consecutive day and once again lead declines falling 5%. Standard Bank soared 3.9% after RMB morgan Stanley released a report advising that bank may pay a special dividend as high as R4.40 after selling many of its overseas assets. Resources and platinum miners performed particularly well as Exxaro, Kumba and Anglo American all closed up over 3% while Anglo Platinum and Impala platinum were up 5.2% and 3.3% respectively. Value traded was R17.1bn and the rand was at R10.73 to the dollar. Trade Ideas 1) Long: BVT off R271, stock has bullish momentum breaking through resistance at the R270 level. Short term target price of R285, stoploss at R267. 2) Long: BIL off R324, stock has trendline support at the R320 level. The stronger copper price should support the move higher. Short term target price of R350, stoploss at R317.
Posted on: Tue, 18 Mar 2014 07:43:54 +0000
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