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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SOUTH AFRICA
- SA's Top40 index continues to flirt with key support at 60k, holding up price action from a deeper correction towards 57,300.
- The index has been in a consolidation phase since peaking in March, shedding -5.53% from its peak at 64k.
- SA's equity market has suffered from a swathe of foreign outflows in recent weeks amid surging covid-19 cases and domestic political infighting.
- Additionally, the T40's close correlation to Chinese equity markets, owing to index heavyweight Nasper's discount to Tencent, has been a major source of bearish pressure as Chinese curbs on domestic tech giants continues to weigh.
- The near-term technical outlook remains moderately bearish so long as price action remaisn pegged below the 100 & 50dmas, which recently made a bearish crossover. Meanwhile, oscillator momentum in the RSI is hovering marginally below bullish territory at 49.2.
- Diversified miners are keeping the index firmer this morning, led higher by upside in gold and platinum prices – with early signs of a bullish engulfing candle forming if we can maintain a close above 60,389. However, a hawkish outcome from today's FOMC minutes and firmer USD poses risks to a near-term pullback below 60k on a retracement in PGM strength.
- A close below 60k in the coming sessions would likely precipitate a retest of the March-June swing lows, and potentially Jan lows & the 200dma (57,428), should support fail to hold.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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