Game on!
Naspers (NPN-JSE) and Prosus (PRX-JSE)-owned Tencent’s Dungeon & Fighter Mobile more than doubled sales of longstanding Chinese best-seller Honor of Kings in its first month, according to independent research. The performance suggests the online entertainment leader may have finally found a marquee franchise to replace ageing titles. Bloomberg reports that the Nexon Co.-produced title brought in $270 million on iOS in the 30 days after its launch on May 21, taking the top spot in both downloads and revenue in the country, data released by industry tracker Sensor Tower showed.
Fertile grounds
Fertilizer stocks like Mosaic (MOS-NASQ) and Nutrien benefitted from an extension to the Chinese export bans intended to contain domestic prices and protect farmers, rising +4.7% and +2%, respectively. The former was the only non-energy stock to crack the S&P top 10 gainers list on the day.
Deutsche Bank strategists see US equities taking a breather
US stock markets are set to pause after hitting a fresh record led by tech, leaving equity positioning near the top of the range, said Deutsche Bank strategists. A Bloomberg report noted a narrow jump in positioning, a boom in equity inflows looking stretched and a temporary diminishing of buybacks due to a blackout period, which suggest conditions are in place for a “breather”, according to strategists including Binky Chadha.
JPMorgan says higher stocks, worse breadth ‘ominous’
The shrinking share of stocks driving the climb in US equity indexes is worrying, according to JPMorgan Chase’s Marko Kolanovic. Quoted in Bloomberg, the bank’s chief market strategist said in a note to clients: “Rising markets on narrowing breadth has historically been an ominous sign … Two consecutive soft CPI prints point toward a soft landing, yet a number of indicators suggest elevated market and growth risks.”
Keep buying the dip
Investors are likely to keep piling into US stocks at the sign of any pullback as the Federal Reserve edges closer to reducing interest rates, according to Societe Generale SA. The firm anticipates that the easing cycle will begin in early 2025. Even after a 15% rally year-to-date, strategists led by Manish Kabra expect the S&P 500 Index to “stay in buy-the-dip mode, with the next upleg coming closer to a Fed rate-cutting cycle”, according to comments carried by Bloomberg.
Arnault takes stake in Richemont
Bernard Arnault has taken a personal equity stake in Cartier parent company Cie Financiere Richemont SA (CFR-JSE). It’s unclear exactly how much of a shareholding the LVMH chairman and CEO acquired in Cie Financiere Richemont SA. It was described by one of the people as “small” and part of a broader Arnault family-owned portfolio of investments in publicly listed companies.
Trend alert: The booming pet economy
Recent strength in food sales has set the stage for the global pet industry to top $500 billion by 2030, according to an analysis. This revised figure is up from last year’s projection of $493 billion. Favourable trends — including the humanisation of pets, which benefits premium niches — may continue. The US can remain the biggest market, nearing $200 billion by 2030, though other regions could grow more quickly. The Chinese market may expand 51% to $49 billion, increasing faster than the country’s GDP forecast.
BER says SA growth could rise to 3.5% by 2029 on Reforms
South Africa’s Bureau for Economic Research (BER) said economic growth could accelerate to 3.5% by 2029 if the reforms currently being put in place take hold, which would prove positive for SA Inc stocks. The research agency modelled its forecasts on the economic reforms being pushed by Operation Vulindlela, an agency within the South African presidency that aims to boost economic growth, Craig Lemboe, the deputy director of the BER, said at a conference. However, a lot will depend on the success of the Government of National Unity (GNU), which is facing negotiations.
Rand at mercy of politics
The South African rand (ZAR) staged its biggest drop in nearly a month as investors awaited an announcement by President Cyril Ramaphosa the composition of a new cabinet after agreeing to form a broad coalition with opposition parties. Expect more volatility until the details are agreed on and the cabinet announced.
Stock pick: British American Tobacco
The FDA approved Altria NJOY menthol variants, which is a positive development for owner British American Tobacco (BTI-JSE). There is also the possible Vuse menthol approval, subject to an appeal in the courts that looks likely to succeed, and a possibility that the FDA and various other US govt agencies get serious about enforcing the ban on Chinese illicit disposable vapes, which would also prove positive for the stock.
Trading Update : 3 July 2024
Game on!
Naspers (NPN-JSE) and Prosus (PRX-JSE)-owned Tencent’s Dungeon & Fighter Mobile more than doubled sales of longstanding Chinese best-seller Honor of Kings in its first month, according to independent research. The performance suggests the online entertainment leader may have finally found a marquee franchise to replace ageing titles. Bloomberg reports that the Nexon Co.-produced title brought in $270 million on iOS in the 30 days after its launch on May 21, taking the top spot in both downloads and revenue in the country, data released by industry tracker Sensor Tower showed.
Fertile grounds
Fertilizer stocks like Mosaic (MOS-NASQ) and Nutrien benefitted from an extension to the Chinese export bans intended to contain domestic prices and protect farmers, rising +4.7% and +2%, respectively. The former was the only non-energy stock to crack the S&P top 10 gainers list on the day.
Deutsche Bank strategists see US equities taking a breather
US stock markets are set to pause after hitting a fresh record led by tech, leaving equity positioning near the top of the range, said Deutsche Bank strategists. A Bloomberg report noted a narrow jump in positioning, a boom in equity inflows looking stretched and a temporary diminishing of buybacks due to a blackout period, which suggest conditions are in place for a “breather”, according to strategists including Binky Chadha.
JPMorgan says higher stocks, worse breadth ‘ominous’
The shrinking share of stocks driving the climb in US equity indexes is worrying, according to JPMorgan Chase’s Marko Kolanovic. Quoted in Bloomberg, the bank’s chief market strategist said in a note to clients: “Rising markets on narrowing breadth has historically been an ominous sign … Two consecutive soft CPI prints point toward a soft landing, yet a number of indicators suggest elevated market and growth risks.”
Keep buying the dip
Investors are likely to keep piling into US stocks at the sign of any pullback as the Federal Reserve edges closer to reducing interest rates, according to Societe Generale SA. The firm anticipates that the easing cycle will begin in early 2025. Even after a 15% rally year-to-date, strategists led by Manish Kabra expect the S&P 500 Index to “stay in buy-the-dip mode, with the next upleg coming closer to a Fed rate-cutting cycle”, according to comments carried by Bloomberg.
Arnault takes stake in Richemont
Bernard Arnault has taken a personal equity stake in Cartier parent company Cie Financiere Richemont SA (CFR-JSE). It’s unclear exactly how much of a shareholding the LVMH chairman and CEO acquired in Cie Financiere Richemont SA. It was described by one of the people as “small” and part of a broader Arnault family-owned portfolio of investments in publicly listed companies.
Trend alert: The booming pet economy
Recent strength in food sales has set the stage for the global pet industry to top $500 billion by 2030, according to an analysis. This revised figure is up from last year’s projection of $493 billion. Favourable trends — including the humanisation of pets, which benefits premium niches — may continue. The US can remain the biggest market, nearing $200 billion by 2030, though other regions could grow more quickly. The Chinese market may expand 51% to $49 billion, increasing faster than the country’s GDP forecast.
BER says SA growth could rise to 3.5% by 2029 on Reforms
South Africa’s Bureau for Economic Research (BER) said economic growth could accelerate to 3.5% by 2029 if the reforms currently being put in place take hold, which would prove positive for SA Inc stocks. The research agency modelled its forecasts on the economic reforms being pushed by Operation Vulindlela, an agency within the South African presidency that aims to boost economic growth, Craig Lemboe, the deputy director of the BER, said at a conference. However, a lot will depend on the success of the Government of National Unity (GNU), which is facing negotiations.
Rand at mercy of politics
The South African rand (ZAR) staged its biggest drop in nearly a month as investors awaited an announcement by President Cyril Ramaphosa the composition of a new cabinet after agreeing to form a broad coalition with opposition parties. Expect more volatility until the details are agreed on and the cabinet announced.
Stock pick: British American Tobacco
The FDA approved Altria NJOY menthol variants, which is a positive development for owner British American Tobacco (BTI-JSE). There is also the possible Vuse menthol approval, subject to an appeal in the courts that looks likely to succeed, and a possibility that the FDA and various other US govt agencies get serious about enforcing the ban on Chinese illicit disposable vapes, which would also prove positive for the stock.
Information correct at time of publishing. It is important to conduct thorough research and analysis using a combination of fundamental and technical analysis techniques to make informed trading decisions. Additionally, consider your risk tolerance, investment objectives, and time horizon when assessing company performance for trading.