South African stock alert

SAFR

CLOSING UPDATE: Firstrand drops 2.0%, led Bank sector lower 19 January 2018 18:59 SAST

NEWS BITES - AFRICA

This is an end of day Alert, produced after today's South African market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Firstrand, South Africa's largest bank by market capitalisation, has dropped 2.0% to trade at ZAR64.38 vs. the Bank sector which weakened 1,698.3 points (or 1.9%) to 89,577.6. Representing a weighting of about 30.2% of the sector, the stock accounted for 32.6% of today's loss. Trading volume was 84% of average at the end of the day. Compared with the FTSE/JSE- Africa Top 40 Index which rose 48.2 points (or 0.09%) in the day, this represented a relative price change of -2.1%.

Technical indicators complementing today's significant downtrend:

+ The price dropped 3.5% in the last month.

Note

Bullish Signals:

The positive 1.3 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

The 4.7% discount to 12-month high of ZAR67.52 against the 48.9% premium to 12-month low of ZAR43.25 suggests the stock continues to push for new highs.

In the last three months the stock has hit a new 52-week high six times, pointing to an uptrend.

The company is cash rich with Cash to Market Capitalisation at 46.0%.

Tobin's Q Ratio is 0.3. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.

As per the Du Pont analysis, Return on Equity is high at 24.1%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Return on Equity 24.1% [14.3%]

Return on Assets 2.1% [1.4%]

TODAY'S ALERT

Afternoon Alert: Firstrand drops 2.0%, leads market lower

19 January 2018 12:53 SAST

Firstrand Ltd. (J:FSR) has dropped 2.0% to trade at ZAR64.37 vs. the FTSE/JSE- Africa Top 40 Index which weakened 40.9 points (or 0.08%) to 53,969.6. Representing a weighting of about 4.2% of the index, the stock accounted for the loss. Trading volume was 1.5 times average so far today.

RECENT ALERTS

CLOSING UPDATE: Firstrand lifts 2.8%, led Bank sector higher

18 January 2018 18:59 SAST

Firstrand, South Africa's largest bank by market capitalisation, has lifted 2.8% to trade at ZAR65.70 vs. the Bank sector which strengthened 1,636.4 points (or 1.8%) to 91,275.9. Representing a weighting of about 30.2% of the sector, the stock accounted for 46.9% of today's gain. The shares have outperformed 85% of the market in the past week. Trading volume was 80% of average at the end of the day. Compared with the FTSE/JSE- Africa Top 40 Index which fell 58.4 points (or 0.1%) in the day, this represented a relative price increase of 2.9%.

Afternoon Alert: Firstrand lifts 2.2%, leads market higher

18 January 2018 12:50 SAST

Firstrand Ltd. (J:FSR) has lifted 2.2% to trade at ZAR65.30 vs. the FTSE/JSE- Africa Top 40 Index which strengthened 42.0 points (or 0.08%) to 54,110.8. Representing a weighting of about 4.2% of the index, the stock accounted for the gain. The shares have outperformed 83% of the market in the past week. Trading volume was 1.4 times average so far today.

Firstrand Ltd. (J:FSR; JNB:FSR; SJ:FSR)

ISIN: ZAE000066304

PermID: 4295889278

Source: www.BuySellSignals.com