| The JSE and the rand strengthened yesterday, joining a risk-on rally in global assets. Investors appeared to look past a lot of the bad news, pushing shares in Absa and Old Mutual higher despite the severe impact Covid-19 has had on their respective first-half performances. In the case of Absa, the second six months is likely to show an improvement after it front-loaded potential credit impairments as it's required to do under accounting rules. Still, after withholding an interim dividend it's cautioned shareholders not to expect a final dividend either. Aspen rallied after it said it was in talks that could see it selling or introducing a partner to its European commercial pharmaceuticals business a year after it ended talks with another suitor. But Tongaat Hulett ended lower after the Financial Sector Conduct Authority followed the JSE's lead and fined the group for irregularities in its accounts a few years back. More on those stories to follow in today's newsletter, along with an update from food services group Bidcorp and news that Famous Brands is selling its majority stake in tashas ... back to Tasha. I hope you have a good day. Stephen Gunnion Managing Editor, InceConnect
Recent notes of topical interest from Ingham Analytics Andrew Kinsey's latest note entitled "Fed fortune cookie follies" was published on Monday. It makes the point that market action in many asset classes is either in or approaching bubble territory but that US Fed signals, such as they are, are not particularly helpful in giving direction for traders who live or die on the basis of what happens to their profit/loss statements - you've got to make a profitable judgement call, hopefully, as there are consequences. Andrew has some practical trading tips at this time of market uncertainty and huge moves in asset prices - take precious metals alone or the relative weakness of the dollar of late. At the back of any trader's mind has to be what is my exit strategy? This practical note follows on from "Stimulus surge takes the sting out of Covid-19" which takes note of the negative implications of Covid-19 for business in the US if things aren't managed properly (by people doing common sense things). Even explosive fiscal and monetary stimulus is powerless when confronted by Mother Nature. | 