Sunday, 29 September 2024
Time Published: 20h28
JSE All Share Index at all-time highs, with a weekly and monthly breakout however, it is overbought in the short term therefore a pullback is a high probability.
Driven in large part by global interest rate cuts and Chinese monetary stimulus.
JSE listed, China-related shares experiencing substantial, renewed buying interest i.e. Resources, Technology (NPN, PRX) and Luxury Goods.
The 'money flow' is clear, with market participants buying into resources (an upweight), while South African-facing shares continuing to trade in overbought territory but not making significant gains (not as much buying pressure as seen in previous weeks/months).
Our short term call has been to buy resource/mining related shares to take advantage of excessively oversold short term and medium term conditions.
Within the financial sector, our preferred picks have been Insurers OVER Banks (both OUTsurance and Old Mutual) as recent ideas, and both names seeing significant rallies (OUT in play, OMU accelerating).
This week's high impact economic events are as follow (source: TradingEconomics)
As always, we want to approach every opportunity on a case-by-case, or trade-by-trade basis by relying on the data and price action as a guide.
Lester Davids
Analyst: Unum Capital
Comentarios