South African stock alert


Afternoon Alert: Standard Bank increases 1.7%, leads Bank sector higher 16 January 2018 12:50 SAST


Standard Bank Group Ltd. (J:SBK) has increased 1.7% to trade at ZAR191.21 vs. the Bank sector which strengthened 974.7 points (or 1.1%) to 87,043.4. Representing a weighting of about 27.4% of the sector, the stock accounted for 41.0% of today's gain. The shares have outperformed 84% of the market in the past six months. Trading volume was 2.2 times average so far today.

Current indications of bullish signals that support the trend in the unusual trading:

+ The positive 3.2 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 4.4% discount to 12-month high of ZAR200.0 against the 42.7% premium to 12-month low of ZAR134.01 suggests the stock continues to push for new highs.

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

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


+ Price to Book of 2.1 [2.4]

Other Bullish Signals include:

+ Tobin's Q Ratio is 0.2. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 21.5% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity of 14.4% is better than sector average of 14.3%.

+ Return on Equity is positive and has seen consecutive rises in recent years.


Bearish Signals:

The price decreased 0.5% in the last week.

Standard Bank Group Ltd. (J:SBK; JNB:SBK; SJ:SBK)

ISIN: ZAE000109815

PermID: 4295889219