| It appears that market volatility is here to stay for now. After sinking more than 2.5% on Monday as concern over a second wave of the Covid-19 pandemic sent equity markets mostly lower, the JSE could be in for a much improved day today. Wall Street rebounded late Monday after the Federal Reserve stepped in to support markets once again. And it shot up again yesterday when US retail data for May was released. Sales grew by 17.7% last month following two months of record declines. With investors reacting quickly to any news, Discovery's shares fell close to 7% at their worst on Monday after it warned of a big decline in full-year profit due to the provisions it's making for the potential impact of Covid-19. Bidcorp has also been affected but the global foods services group says the worst may be behind it, with activity levels recovering sooner than expected. It doesn't expect any fundamental shift in consumers eating out at restaurants over the longer term either. More on those to follow, along with trading statements from Telkom and Wescoal, interim results from Delta Property Fund and the news that Zeder has sold its stake in Quantum Foods to Country Bird. Finally, take a look at the introductory monthly subscription offer Ingham Analytics is running for the month of June. Don't miss out on your opportunity to sign up for insightful equity research produced by the research team at Ingham Analytics. I hope you have a good day. Stephen Gunnion Managing Editor, InceConnect
The latest from Ingham Analytics. In "What do the currencies say?" Ingham Analytics top trader Andrew Kinsey picked the most fruitful FX pairs to trade as short rand/USD, short lira/USD and long yen/USD. All three have played out in this past week of rollicking markets, not just in foreign exchange but in equity and bonds too. Covid-19 lockdowns have sent volatility soaring and opened up profitable trade opportunities in FX with other forms of betting such as sports shut down. Foreign exchange trading has had the largest single growth among retail investors in South Africa in the past few months. Ingham Analytics is well-positioned to guide you through this minefield. In equity trading, Ingham Analytics have had further profitable trades in BHP, Kumba and Sasol. These calls add to their early avoid calls on local banks pre-Covid-19 - even more so now with Covid-19 lockdown ripping banking income statements to shreds. In "Iron ore and steel defies Covid-19 macro gloom" they advised that there was short term value in iron ore stocks even as the rest of the market was moribund or sinking. And what a trade it was, in particular Kumba with huge gains in a month. Their latest note is entitled "Kumba, qaphela!" and brings us up to date with what is driving this iron ore market and share prices. The word qaphela (beware) was on the money as that stock sold off on Monday, going below R500 at the opening. Where to now for those that rode the stock up? Sasol was called a sell last week and has sunk. "Henry sends a message" has been a popular download as have other Sasol notes.
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