Customise Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorised as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyse the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customised advertisements based on the pages you visited previously and to analyse the effectiveness of the ad campaigns.

No cookies to display.

19 Jan 24 : Stock Market Rebounds

  • The stock market rebounded after two consecutive days of losses. The Dow Jones Industrial Average increased by 0.54%, the S&P 500 rose by 0.88%, and the Nasdaq Composite surged by 1.35%. The main driver behind this recovery was the positive earnings report from TSMC, which saw its stock price jump by 9.79%. This strong performance also lifted the broader semiconductor sector, with the SOX index rising by 3.36%.
  • TSMC’s positive outlook was the highlight of its earnings report. The company stated that its business has reached a bottom on a year-over-year basis and expects healthy growth in 2024. TSMC projected revenue growth of over 20%, which exceeded street expectations. The demand for artificial intelligence (AI) was a key driver behind this optimistic outlook.
  • While the semiconductor sector showed strength, other real-world sectors continued to lag behind. The lack of market breadth is a concern, but for now, investors are appreciating any positive momentum.
  • In Asian markets, most indices are showing positive performance as the week comes to an end. The Nikkei and ASX indices both increased by 1%, while Chinese benchmarks, such as the Hang Seng Index, declined by 0.20% and the SHCOMP dropped by 0.30%. Tencent’s stock price decreased by 1.5% at the time of writing. Interestingly, the Australian miners seemed to have shrugged off a 2% increase in iron ore futures.

Global results:

  • Richemont impressed investors with a 10% increase in its stock price. The company reported solid sales, driven by its jewellery division. The performance in China was particularly comforting. Additionally, Richemont revealed that it has received unsolicited interest in YNAP, which is a positive development. Comparatively, Watches of Switzerland saw a decline of 28% in its share price.

Local results:

  • Motus experienced a 4.7% increase in its stock price, which was worse than expected. The company faced margin pressure in South Africa due to excess inventory and a decline in sales. The finance charge was also higher than anticipated. The recent price action suggests that someone may be calling the point of maximum pain regarding margins, but it might be premature to draw conclusions.

 

 
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. This content is not meant as financial advice.
Picture of sarah.holm

sarah.holm

Leave a Reply

A South-African independent investment platform backed by a major bank.

A South-African investment platform backed by a major bank.