Global markets remain robust as volatility declines

by , 17 May 2018
Global markets remain robust as volatility declines
Global markets remain robust with no clear signs of a downturn as volatility slowly declines. Investors are buying even the smallest dip, which has seen the market remain in a bullish phase this past week.

On the currency front, we could see gradual rand weakness over the coming months due to the global interest rates rising.
A Federal Reserve member stated:
"Interest rates might have to go higher than the 3% target to contain inflation in the future"
While an ECB policy maker indicated there will be an update on the timing to the end of the EU’s monetary stimulus programme.
There is only one way to profit from Eskom’s Coal Cliff – and SA’s new energy revolution and that is to invest in these three Penny Stock Eruptors:
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Penny Stock Eruptor #2:
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Penny Stock Eruptor #3:
A South African company that builds and manages renewable energy plants
Last week’s movers and shakers… 

One to Buy
African Rainbow Minerals – in a sweet spot
ARM was not spared from the sharp sell-off in mining related stocks during February and March.
However, a closer look at this company is justified.
It's year-end is June and in the first half to December delivered strong results while EPS is up 15%.
Ferrous metals were the largest contributor to earnings, and although they anticipate a correction, iron ore prices did materialize while manganese prices remain firm.
Nevertheless, iron ore prices have recovered and average prices for the second half should be higher than the first half.
Cost containment has been good across most of their operations, and we expect more good news with the next results announcement.
The forward PE is approximately 7.1 and forward dividend yield of 4.5%. ARM typically provides a trading statement in mid-August with results out in September.
We are buyers of ARM (JSE share code is: ARI) at current levels of R110 per share. 
  • Short term traders can buy ahead of the trading results announcement.
  • Longer term investors can hold while Ferrous Metal prices remain supportive.
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Short term Ideas 
  • Netcare: Cancel Order, entry not achieved.
  • Mediclinic: Trade closed for a 11.7% gain in less than a month.

Long Term Ideas      
  • Dischem: Buy dips below R30.50 for a move above R37.00
  • Shoprite: Building support above R240.00.  Buy below R245.00. Target of R285.
  • Anglo: 8% open gain, next resistance level at R350.
  • Sasol: A break above R460 targets R490. Move stop loss to R440 for a 10% gain.
  • Aspen: Accumulate on weakness below R260.
  • Sygnia: Add below R12.50.
  • Santova: Buy below R3.00.
  • Merafe: Accumulate below R1.55.
  • Jubilee: A new deal in Zambia, will see buyers come in. Speculative buy below R0.50.
  • MTN: Held up well after US pulled out of Iran deal. Bullish results, looking for a break above R 135,00.
  • Glencore: Another dividend received. Hold
  • Wescoal: Long term buy. Add below R1.80
  • Naspers: Increase exposure below R3,000. 

Global markets remain robust as volatility declines
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