South African stock alert

SAFR

CLOSING UPDATE: Standard Bank drops 3.5%, led market lower 18 June 2018 19:02 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).

Standard Bank, South Africa's 2nd largest bank by market capitalisation, has dropped 3.5% to trade at ZAR190.17 vs. the FTSE/JSE- Africa Top 40 Index which weakened 322.8 points (or 0.6%) to 51,004.9. Representing a weighting of about 4.0% of the index, the stock accounted for 22.4% of today's loss. The shares have underperformed 93% of the market in the past week. Compared with the FTSE/JSE- Africa Top 40 Index which fell 322.8 points (or 0.6%) in the day, this represented a relative price change of -2.9%.

Technical indicators complementing today's significant downtrend:

+ The negative 3.44 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price tumbled 6.4% in the last week and 9.3% in the last month.

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

Overvaluation:

+ Price/Earnings/Growth of 1.89 [1.2]

Note

Standard Bank today is at a discount of 17.7% to the 12-month high of ZAR231.0 on 08 Mar, 2018. It is at a premium of 39.0% to the 12-month low of ZAR136.79 on 22 Jun, 2017.

Bullish Signals:

The company is cash rich with Cash to Market Capitalisation at 23.6%.

Tobin's Q Ratio is 0.2. Compared with the rest of the market the stock is undervalued and ranks in the top 5% of stock by value of Q Ratio.

Net profit margin has averaged 22.5% 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 is high at 21.2%. Also, this has improved from 18.8% last year.

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

Undervaluation:

Return on Equity 21.2% [15.4%]

Year-on-Year Earnings Growth of 17.8% [10.1%]

TODAY'S ALERT

Afternoon Alert: Standard Bank decreases 1.7%, leads Bank sector lower

18 June 2018 12:50 SAST

Standard Bank Group Ltd. (J:SBK) has decreased 1.7% to trade at ZAR193.83 vs. the Bank sector which weakened 1,482.6 points (or 1.7%) to 83,772.3. Representing a weighting of about 28.9% of the sector, the stock accounted for 27.5% of today's loss. The shares have underperformed 86% of the market in the past week.

RECENT ALERTS

CLOSING UPDATE: Standard Bank drops further 2.0%, led market lower

15 June 2018 19:03 SAST

Standard Bank, South Africa's 2nd largest bank by market capitalisation, has sunk 5.2% to trade at ZAR197.10 vs. the FTSE/JSE- Africa Top 40 Index which weakened 212.8 points (or 0.4%) to 51,965.4. Representing a weighting of about 4.1% of the index, the stock accounted for 52.1% of today's loss. Trading volume was 1.9 times average at the end of the day. Compared with the FTSE/JSE- Africa Top 40 Index which fell 212.8 points (or 0.4%) in the day, this represented a relative price change of -4.8%.

Afternoon Alert: Standard Bank drops 3.3%, leads market lower

15 June 2018 12:50 SAST

Standard Bank Group Ltd. (J:SBK) has dropped 3.3% to trade at ZAR201.21 vs. the FTSE/JSE- Africa Top 40 Index which weakened 212.8 points (or 0.4%) to 51,965.4. Representing a weighting of about 4.2% of the index, the stock accounted for 33.1% of today's loss. Trading volume was 1.3 times average so far today.

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

ISIN: ZAE000109815

PermID: 4295889219

Source: www.BuySellSignals.com