Preferred entry point
THIS IS THE newly listed platinum ETF from Absa that has been storming ahead as it benefitted from the weaker rand (the ETF is rand denominated so both the dollar platinum price and rand/$ exchange rate drive the price).
We have previously suggested this as a ‘Buy’ and the return has been great, but we’re shifting to a ‘Hold’ (boring, I know, but important). The rand seems to have over-extended itself and in the short term we’re unlikely to see further weakness (if you are bearish on the rand then NEWUSD is the preferred instrument). Rand strength will take some shine off the ETF and coupled with this is a dollar platinum price that is not reacting much to strike threats and reduced production. The net result is likely to be a f lat to weaker NGPLT and hence a ‘Hold’. Basically, a ‘Hold’ means if you have it for the longer term do nothing and if you are interested in buying wait for a lower price, then it will once again be a ‘Buy’.