South African stock alert

SAFR

CLOSING UPDATE: Firstrand increased further 0.2%, led Bank sector higher 26 July 2017 18:57 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 increased 1.1% to trade at ZAR51.67 vs. the Bank sector which strengthened 504.4 points (or 0.7%) to 72,828.0. Representing a weighting of about 29.8% of the sector, the stock accounted for 47.4% of today's gain. The shares have outperformed 80% of the market in the past week. Trading volume was 52% of average at the end of the day. Compared with the FTSE/JSE- Africa Top 40 Index which rose 141.8 points (or 0.3%) in the day, this represented a relative price increase of 0.8%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.97 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 5.1% discount to 12-month high of ZAR54.46 against the 19.5% premium to 12-month low of ZAR43.25 suggests the stock continues to push for new highs.

+ In the South African market, the stock's relative price strength percentile is improving at 58 for 6 months, 82 for 3 months and 84 for 1 month.

+ The price lifted 2.0% in the last week and jumped 8.1% in the last month.

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

Undervaluation:

+ Return on Equity 23.4% [15.7%]

+ Return on Assets 2.1% [1.5%]

Other Bullish Signals include:

+ 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.

+ Net profit margin has averaged 36.7% 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 is high at 23.4%.

Note

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

Overvaluation:

Price to Book of 2.7 [2.1]

TODAY'S ALERT

Morning Alert: Firstrand increases 0.9%, leads Bank sector higher

26 July 2017 10:50 SAST

Firstrand Ltd. (J:FSR) has increased 0.9% to trade at ZAR51.54 vs. the Bank sector which strengthened 383.4 points (or 0.5%) to 72,707.0. Representing a weighting of about 29.8% of the sector, the stock accounted for 48.4% of today's gain. The shares have outperformed 82% of the market in the past month. Trading volume was 1.1 times average so far today.

RECENT ALERTS

CLOSING UPDATE: Firstrand decreased further 1.2%, led Bank sector lower

25 July 2017 18:58 SAST

Firstrand, South Africa's largest bank by market capitalisation, has dropped 2.3% to trade at ZAR51.10 vs. the Bank sector which weakened 911.7 points (or 1.2%) to 72,323.7. Representing a weighting of about 29.7% of the sector, the stock accounted for 54.7% of today's loss. Trading volume was 75% of average at the end of the day. Compared with the FTSE/JSE- Africa Top 40 Index which rose 164.9 points (or 0.3%) in the day, this represented a relative price change of -2.6%.

Afternoon Alert: Firstrand decreases 1.1%, leads Bank sector lower

25 July 2017 12:50 SAST

Firstrand Ltd. (J:FSR) has decreased 1.1% to trade at ZAR51.74 vs. the Bank sector which weakened 476.6 points (or 0.7%) to 72,758.7. Representing a weighting of about 29.9% of the sector, the stock accounted for 48.7% of today's loss. Trading volume was 88% of average so far today.

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

ISIN: ZAE000066304

PermID: 4295889278

Source: www.BuySellSignals.com