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By Ian Stiglingh on 26 July 2017

World News

Wall Street traded firmer yesterday on upbeat corporate earnings. Positive sentiment was also confirmed by US consumer confidence that climbed to a 16-year high. UK markets were driven by similar forces as earnings from companies in the mining sector boosted valuations. Oil prices jumped yesterday on a combination of positive events. Data showed that companies are spending less on oil and gas exploration and that US production and oil supplies are declining. On top of that Saudi Arabia have promised to further cut production.

 

South African News

SA markets rallied yesterday on the back of positive corporate earnings from mining companies. The ZAR weakened against the Dollar, further adding support to the market. Unemployment figures were expected yesterday, but nothing from StatsSA yet.

 

Company News - Daniel

Shoprite Holdings Ltd

Shoprite is one of the largest retailers in Africa. As with all retailers lately the company has been struggling to grow sales in a stagnant economy. The interest rate cut last week will free up disposable income for consumers and will lift retail sales in the medium term. Shoprite and Checkers have been gaining market share consistently for the past 10 years and in my view the best retailer in the country. The share price jumped on earning report last week, but since then the share price dropped down to under R200 per share, which I believe is a good price to for the longer-term investor.

 

The Day Ahead

The US Fed will make it interest rate decision today and it will likely be an unchanged rating. The focus for the market will be on details pertaining to the winding down of the Fed’s balance sheet, which effectively reverses stimulus measure from recent years.

 

Key Results Out Today

US Fed rate decision

UK GDP

US New home sales

US Mortgage applications

 

Quote of the day

“True wisdom is not found in yes-or-no answers, but in the open mind of not-knowing.”

-          Melvin McLeod