Global markets took a breather from their recent rally on Friday, with the JSE following suit and dropping back below the key 60,000 level it crossed a day earlier.

While Wall Street's main indices opened at record highs, they also pulled back and closed lower due to uncertainty around a coronavirus stimulus deal which has been one of the driving forces behind the recent upward movement on markets.

At home, AngloGold Ashanti reversed early gains to close lower, despite the gold mining company preparing investors for a much bigger dividend this year thanks to its strongest free cash flow in close to a decade. Like other gold producers, it has benefitted from a higher gold price as it focused on its strongest assets.

Steinhoff came under pressure after announcing the sale of a number of local properties including warehouses and offices to subsidiary Pepkor. Caxton also closed lower after announcing it had increased its stake in packaging group Mpact, which rose on the news.

More on those stories to follow, along with results from Bauba Resources and more details about Aveng's upcoming rights issue.

Finally, if you haven't yet had a chance to tune in yet, I can highly recommend the Magic Markets podcasts launched just over a month ago. The Finance Ghost and Moe-Knows (macroeconomic guru Mohammed Nalla) discuss key market trends across stocks, currencies, fixed income, commodities, macroeconomics and geopolitical trends, helping you understand what's going on out there. Click on this link to access the first six podcasts, which are free to listen to, turn up your speakers and enjoy.

I hope you have a good week.

Stephen Gunnion

Managing Editor, InceConnect

The latest from Ingham Analytics

Ingham Analytics say that whilst the valuations of several stocks in the US have levitational qualities, Tencent is on the pricey side these days but not absurdly so. They've recommended avoiding Prosus and Naspers but say Tencent has much to recommend it. Their latest note on Tencent is entitled "Gaming for change". They have upped their three-year earnings forecast, with a compound growth rate of 24% pa estimated. Another Tech themed note is "Will antitrust action spoil the US tech party?"