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Kumba, Reinet offer opportunities

Aug 29 2010 16:06 Frans de Klerk

Company Data

Kumba Iron Ore Ltd [JSE : KIO]

Last traded R562.15
Change R0.38
% Change 0.07%
Cumulative volume 478,143
Market cap R181.05bn

Last Updated: 13/02/2012 at 19:33. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Reinet Investments Sca [JSE : REI]

Last traded R13.70
Change R-0.01
% Change -0.07%
Cumulative volume 1.36m
Market cap R26.84bn

Last Updated: 13/02/2012 at 19:33. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Share Share line Print

Johannesburg  - South Africa’s stock market has seen a healthy 7% correction in August.

The all-share index eventually found support at the 26 400 points level.

While the index consolidates above 26 400 and especially above 26 000, there's a possibility that we could see a short-term run to 27 400 or 27 600.

But the medium- to long-term picture is becoming increasingly negative because the index’s movements are consolidating below the 200-day moving average of 27 560.

Stocks to watch:

Kumba Iron Ore [JSE:KIO]: on Kumba’s weekly graph an important support line can be seen at R310/share.

If the share price does not break down through the support line, a speculative opportunity could arise.

A R295 stop loss is appropriate and, if the market experiences a healthy recovery run profits can be taken if the price moves to around R325 to R330.

Reinet Investments [JSE:REI]: On Reinet’s weekly graph a support line for the medium term can be seen at R10.80/share.

Those accumulating Reinet for the medium to long term might consider it if the share price is around R10.80.

Reinet’s shares are currently trading comfortably in the R10.80 to R11.40 band, and speculators can confidently trade within this range.

Buy close to R10.80, and sell close to R11.40.

The company is sitting on piles of cash and even if global markets fall, the share price is not expected to collapse. Nevertheless a stop loss of R10.45 is recommended.

- Sake24.com

For business news in Afrikaans, go to www.sake24.com

 
 
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