SchalkLouw

SchalkLouw

Monitoring the Rand is like watching paint dry for the past 2 weeks. On 15 August the USDZAR closed at R15.28 - currently R15.16. Over past 5yrs ZAR experienced 2% or more up/down movements, over a rolling 7-day period, pretty much every 3rd day (2.68 days to be precise). Since 14Aug we've seen none. This week the ZAR bucked the trend again, improving against the...

SchalkLouw

This can't be good for Redefine? A recent break of RDF's long-term resistance line definitely has me worried. With a forward dividend yield (according to Thomson Reuters) of over 12.5% it's looking mighty attractive and the current consensus target price of R9.80 is looking more than just the roof away. It does look extremely oversold (according to it's 14 day...

SchalkLouw

Close to a quarter of the total FTSE/JSE All Share Index companies currently trading at extreme oversold environment – trading under 30 according to its 14day RSI. You would think that with all negativity surrounding Sasol over the past week, that it would find itself in the Top5 most “oversold” list - close but no cigar. Top5 most overbought still dominated by...

SchalkLouw

Another tough week for Emerging Market Currencies in general. Main reason however still remains the stronger USD. South Africa however was relatively unscathed, only losing 0.3% over the week (against USD), while most other BRICS currencies weren’t so lucky. Russia was hit the hardest, with India not too far behind. #BRICS currency/USD movements for this week: ...

SchalkLouw

We can clearly see the Descending Triangle in the MSCI Emerging Markets ETF ETF (EEM) share price movement that developed over the past 2 years which could be very positive for EEM, should we see a break and close above the resistance level at $42.70. A break a close above these levels could see the price seeking resistance at around $43.50. My medium term target...

SchalkLouw

Another tough week for Emerging Market Currencies in general. The USD did weaken somewhat, but at no avail for BRICS currencies. South Africa was again hit the hardest, extending the South African Rand’s losses to -5.8% YTD. #BRICS currency/USD movements for this week: Brazil -1.3% Russia 0.0% India -1.9% China -1.7% South Africa -3.1% Euro/USD +0.8%...

SchalkLouw

Remgro has been on a slippery downward slope since the beginning of 2018. When we have a closer look at Remgro's longer-term price movement, we will note that the downward movement might be a lot deeper. Since March 2010, Remgro traded at an average discount to its Intrinsic Value of 16.7%. At the current R179.95 levels, the discount, however, now is at 21.7%,...

SchalkLouw

Tough week for Emerging Market Currencies in general, with three out five #BRICS currencies dropping by 3% against the USD. This was mainly thanks to Trump’s wonderful ability, between the average +/- 7 tweets per day, to still move “mountains” with his tweets. #BRICS currency/USD movements for this week: Brazil -2.8% Russia -2.9% India -1.2% China -0.9%...

SchalkLouw Updated 

Tough week for the Rand. Between the political punch-up between #PublicProtector vs President Ramaphosa & Co, Fitch’s outlook on South Africa to Negative and certain remarks being made by Minister of Health, the Rand experienced a horrible week indeed. Yes, we did see some USD strength, but we lost 4 times as much ground against the USD compared to the second...

SchalkLouw

Once one of the darlings listed on the JSE, Coronation has been on a slippery downward slope since December 2014. The reasons for this have been twofold. Firstly, valuations were extremely stretched (end of 2014), trading at a market capitalization (mkt cap) to Assets Under Management (AUM) percentage of close to 7%, while the average international ratio (for...

SchalkLouw

FTSE/JSE All Share Top5 oversold/overbought according to 14day RSI indicator as follow: Oversold: Tongaat 12 Murray & Roberts 23 Brait SE 24 Discovery Ltd 26 Dis-Chem 26 Overbought: Pioneer Foods 90 Zeder 80 Anheuser Busch InBev 76 Sibanye Gold 74 Clover 74 Once one of the top performers on the JSE, Discovery Ltd has been on a slippery downward...

SchalkLouw Updated 

This week was one of the more positive weeks for the South African Economy and its currency (Rand). With only a 0.3% improvement in the Rand, why would I say that? Well, with the only BRICS country having an interest rate decrease this week, it should be expected that the Rand should have weakened somewhat. Not the case! In fact, the Rand was the only BRICS...

SchalkLouw

Mondi PLC’s short-term momentum returned after the recent positive trading update and now finds the share price at the top of a major symmetrical triangle. A symmetrical triangle chart pattern represents a period of consolidation before the price is forced to breakout or breakdown. A Breakout from the upper trendline indicates the start of a new bullish trend,...

SchalkLouw Updated 

Much more stable week for the Rand, dipping below the R14/USD mark again and ending the week at R13.94. The Rand was also the second strongest BRICS currency for the week. #BRICS currency/USD movements for this week: Brazil +2.3% Russia +1.2% India -0.2% China +0.2% South Africa +1.4% Euro/USD +0.4% Technically, the ZAR definitely gained some...

SchalkLouw Updated 

So, Sasol’s R357 support held up and between it being oversold (according to it’s 14-day RSI) and have Rand weakness, made a nice little bounce. Will watch that long-term support line at R383.50 as my first target. Should that break, it could see us test the next resistance level of R405.50.

SchalkLouw

Typically a one step forward and two steps back week for the Rand. After going in the week at R14.07/USD, the $ZAR went on a power run down to R13.95. So yesterday there was some USD strength and most importantly, the Public Protectors report, with the Rand reaching R14.28 at one stage. It did, however, recover some of its losses to close the week at R14.17. In...

SchalkLouw

Hudaco Industries Limited is a South African-based company, which is engaged in the importation and distribution of branded automotive, industrial and electrical consumable products, operating in the Southern-African region. On Friday, the 28th of June, Hudaco released its interim results for the six months ending May 2019. Under challenging trading conditions,...

SchalkLouw

Another great week for the Rand. Definitely one of the strongest Emerging Market currencies this week. #BRICS currency/USD movements for this week: Brazil -0.8% Russia -0.4% India +1.0% China 0.0% South Africa +1.7% Euro/USD 0.0% Technically, the ZAR also found some strong recent momentum, slicing through both the 50-day (R14.46) & 200-day (R14.22)...