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Your trading week summarised - 1st March 2019

Musa Makoni


What to look forward to this week:

A number of companies have released their earnings results during the past week and the results have been rather mixed. The biggest performance has been from miners such Impala Platinum which has managed to grow revenues due to a combination of higher commodity prices and strategic management. We are expecting more earnings results in the coming week therefore JSE traders can expect big swings as a result of those releases. On the international front, talks between the USA and North Korea fell through as the two sides failed to progress past key issues raised during the talks. The progress made with the Sino-US trade talks could spare markets further, but we have seen such headlines countless times over the past year with little progress being made. Nonetheless it promises to be an eventful week especially on the JSE. I have highlighted the key events you can look forward to below.


  • Monday gets off to a slow start on the economic data front. From South Africa we are expecting the SACCI Business Confidence indicator reading to be released at 11.30am. From the United Kingdom, we are expecting Construction PMI data at 11.30am, and from the Eurozone we can expect PPI data at midday. On the JSE we are expecting earnings releases from Africa Oxygen, The Bidvest Group, Fortress REIT, Heriot REIT, Hulamin, Hyprop Investments, MAS Real Estate, RCL Foods and Stadio Holdings.


  • China gets Tuesday started with the release of the Caixin Services PMI number at 3.45am. The Reserve Bank of Australia is expected to announce its interest rate decision at 5.30am, and forecasts suggest the bank will leave rates unchanged at 1.50%. During the day we are expecting Services PMI numbers from most of the countries in the Eurozone, as well as the USA at 4.45pm. From the USA, we are also expecting the ISM Non-Manufacturing PMI and New Home Sales numbers at 5pm. Locally, we are expecting the Standard Bank PMI reading for February at 09.15am and at 11.30am we are expecting Statistics SA to release South Africa’s 4th quarter GDP numbers. In terms of earnings results, we are expecting earnings results from Attacq Ltd, Clover Industries and Texton Property Fund Ltd.


  • Wednesday starts with the release of Australian GDP numbers at 2.30am.  On the JSE, we are expecting results from Alviva Holdings, Brimstone Investment, Grindrod Ltd, Murray & Roberts, Royal Bafokeng Platinum, SA Corporate Real Estate, Sea Harvest Group, and Vivo Energy. From the USA anticipate the release of the ADP Non-Farm Employment Change at 3.15pm, which will be followed with the release of US Trade Balance data at 3.30pm. The Bank of Canada is expected to announce its interest rate decision at 5pm which is forecasted to remain unchanged at 1.75%.


  • On Thursday morning Australia is expected to release its Retail Sales and Trade Balance data at 2.30am. The Eurozone will be in focus at midday as we anticipate the release of its Revised GDP data. The ECB is expected to announce its interest rate decision at 2.45pm which will be followed by the press conference at 3.30pm. From the USA we are expecting the weekly Initial Jobless Claims numbers also at 3.30pm. On the earnings front, we are expecting results from Aspen Pharmacare, MTN Group and RMB Holdings.


  • Friday is jobs day! This is because most of the market’s attention will be on the USA’s Non-Farm Payrolls numbers which are slated for release at 3.30pm. Along with that data we also expect Average Hourly Earnings, Unemployment Rate, Building Permits and Housing Starts data. Before the jam rolls at 3.30pm, we expect Japan to release its GDP data early that morning at 1.50am. We are expecting Chinese Trade Balance data that same morning and at 9am we are expecting German Factory Orders numbers.


We will be keeping tabs on the events in the markets. Check out our blog for market updates, insights from our GT247.com team, and our independent analysts. Not sure about a trade? Call the GT247.com Trading Desk on 087 940 6102 and bounce your idea off one of our dedicated traders.


Until next week, we wish you profitable trading!