| Good morning Voornaam, Companies certainly made up for lost time on Friday's public holiday. We saw a flurry of local company news yesterday, so buckle up.
On the education side, ADvTECH and STADIO both did a great job of reminding us how lucrative this space can be - if you have the right business model, that is. Tertiary education works well, as does upmarket schooling.
Raubex is about as close as you can get to the so-called "real economy" and they are doing incredibly well. All but one of the underlying segments went in the right direction. Other sources of good news on the market yesterday included FMCG group Premier and hospitality group Southern Sun.
Astral Foods is facing adversity once more. The chicken business really isn't for chickens. Grand Parade Investments is also dealing with pressure, as the gaming sector has lost its shine just as they became a pure-play in that space!
In deal news, Gold Fields is trying to buy a business in Australia. The board on that side is having none of it, even leading to a counter-offer for an underlying asset that the companies have joint ownership of. Will this go hostile? Only time will tell.
Adding to a busy day, we saw numbers from Ascendis Health as well as Burstone.
There are bunch of important Nibbles as well, so make sure you get all the details in Ghost Bites at this link>>>
For those who enjoy a deeper dive, Homechoice International was recently on Unlock the Stock. This is a retail business with an impressive fintech overlay. In fact, I've added it to my portfolio as a rather interesting growth play in South Africa, albeit one that desperately needs more liquidity on the shareholder register. Watch the management presentation and Q&A here>>>
Dominique Olivier's latest piece is on how China managed to disrupt the automotive world, especially when it comes to EVs. The latest models certainly aren't Temu Teslas - they are solid products. Sometimes, a story of disruption is firmly thanks to governmental planning, as you'll learn here>>>
The latest Magic Markets podcast takes a deeper look at the European markets and the companies that you'll find in those indices. Much as everyone is now talking about opportunities outside of the US, one needs to be cautious of this Europhoria. The companies in the indices aren't necessarily the most exciting names around. Learn more here>>>
Here's another opportunity to learn about the state of play out there: Investec's No Ordinary Wednesday brings you a discussion between host Jeremy Maggs and Investec's Chief Economists, Phil Shaw in the UK and Annabel Bishop in SA. The focus is on the economic outlook for Europe and South Africa. Enjoy it at this link>>>
Have a great day! |
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| SATRIX: Don't waste the TFSA opportunity |
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| | | Tax-free savings accounts (TFSA) are one of the most building blocks in any equity portfolio. The advantage of compounding tax-free returns over a long period is incredibly powerful and can really turbocharge a long-term wealth creation journey.
To discuss the importance of TFSA investments and the opportunities available to investors in the ETF universe, familiar voice Siyabulela Nomoyi of Satrix returned to the Ghost Stories podcast.
Enjoy it here>>> |
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| GHOST WRAP: Q1 winners on the JSE |
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| In considering how the first few months of the year have played out, some surprising winners have emerged. The performance in gold is simply a case of the sector carrying on where it left off in 2024, but what about platinum? And where did that telecoms rally come from? Also, have retail stocks continued their slide since the previous episode of Ghost Wrap that focused on that issue?
You can find the recording and the transcript (with charts) at this link>>> |
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| GHOST BITES - Making sense of SENS on the local market |
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| | | ADvTECH and STADIO have shown how to make money in education. Raubex keeps delivering. Astral Foods is facing adversity again. Gold Fields is trying to acquire Gold Road. Look out for Ascendis, Burstone, Grand Parade, Premier and Southern Sun as well. Get the details in Ghost Bites>>> |
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| Unlock the Stock - Homechoice International |
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| In the 49th edition of Unlock the Stock, Homechoice International made its debut on the platform to talk about the interesting mix of retail and fintech businesses in the group. The recording of the management presentation and interactive Q&A is available at this link>>> |
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| DOMINIQUE OLIVIER - Temu Teslas no more: how China won the EV race |
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| | | In case you've been living under a rock, the Chinese vehicle onslaught is causing massive disruption in the automotive sector. It's even more severe in the EV world, something we aren't exposed to in South Africa. Dominique Olivier explains how China did it. Read it here>>> |
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| INVESTEC PODCAST: Global economy - recession or recovery? |
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| | | Recession risks, inflation pressures, and trade tensions - how is the global economy shaping up in 2025? Investec’s Chief Economists, Phil Shaw (UK) and Annabel Bishop (SA), take stock of the latest trends in No Ordinary Wednesday. From global growth forecasts to the economic outlook for Europe and South Africa, they break down what lies ahead in this podcast>>> |
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| International Business Snippet: |
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| Tesla finally caught a bid, rallying 12% higher after nine weeks of losses. Volatility isn't unusual in situations like these. It's also important to be aware of the risks of a dead cat bounce - a term in markets that I prefer not to Google the origins of. Sometimes, on the way down, a stock can put in a couple of sharp rallies in an effort to address the slide. It doesn't necessarily change the trajectory.
Towards the end of last week, Darden Restaurants released earnings that disappointed on revenue but beat on earnings per share. The key restaurant chain in the group is Olive Garden, where same-store sales were up just 0.6% - a number that definitely doesn't inspire confidence among investors. Still, the beat on earnings was enough to drive the share price higher, with a year-to-date return of almost 12%!
In our most recent Magic Markets Premium show, we covered UK financial services group Lloyds Banking. This is old-school banking focused on traditional lending services, now delivering with a digital twist based on the recent focus at that group. This is part of our efforts to show you more companies and risk-reward setups outside of the US. Our subscribers can enjoy our detailed work on this stock. |
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| Magic Markets: The art of investing in art |
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| | | Magic Markets: Tristanne Farrell isn’t shy to admit it: she’s mildly obsessed with art. As a Senior Wealth Manager at Investec Wealth & Investment International, her day job is to help clients build diversified, successful portfolios. Thankfully, with art as one of the more interesting (and certainly most visually stimulating) alternative assets out there, she gets to enjoy some overlap between her passion and her career, including hosting the Art in Focus podcast series.
She joined us to talk about art as an investment, bringing a mix of genuine passion and solid insights into this asset class. To learn more, listen to this podcast>>> |
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| Macroeconomic indicators and IG Markets macro update |
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| Major US indices posted substantial gains yesterday. The Dow Jones Industrial Average surged nearly 600 points, or about 1.4%, while the S&P 500 added almost 1.8% and the Nasdaq Composite rose by 2.3%. These gains were fuelled by optimism that the Trump administration might soften its stance on tariffs.
President Trump hinted at providing exemptions for many countries from reciprocal tariffs, which contributed to market optimism. The US dollar strengthened on strong services data.
The composite PMI data for the Eurozone yesterday was reported at a seven-month high but fell below expectations, indicating mixed economic sentiment. European bourses ended the day slightly lower and index futures are flat this morning.
In Hong Kong, tech-related shares, such as Xiaomi and Alibaba, have experienced significant declines, pulling the Hang Seng Index lower. The Shanghai Composite is trading flat on the day.
On balance we are expecting a slightly softer start for the JSE All-Share Index this morning. The rand closed at lows of the day yesterday against a firmer greenback, although is trading flat this morning.
Gold prices have edged lower with the slightly firmer dollar, while oil prices remain stable as investors weigh the impact of U.S. tariffs on various industries.
Key Indicators: USD/ZAR R18.24/$ | US 10yr 4.33% | Gold $3,017/oz | Platinum $968/oz | Brent Crude $73.01
As often as practically possible, insights from the IG Markets morning macro update by Shaun Murison will be featured here. Where this isn't possible, only indicators will be provided. If you want to learn more about trading, refer back to The Trader's Handbook, a podcast series that takes you through many of the important principles in trading. |
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