It's incredible how often we see corporates end up in a situation where they need to simplify / focus / clean up their group. It's a story as old as time, where disposing of "non-core" assets manages to "unlock value" for shareholders.
AECI is just one of many, many such examples. They've announced a few asset disposals and the market liked it, with the share price closing 5.5% higher on the day. My worry is that the announcement then hinted at further acquisitions!
The other interesting news yesterday was that Redefine is selling Rosebank Corner. Currently an office space, this will be converted to residential to make it work for the buyer. This shows you that the office market still isn't healthy.
Get all the details you need on these updates (and the Nibbles) in Ghost Bites at this link>>>
It's going to be a very busy week of new content next week, so make sure you're up to date! Kingsley Williams takes you on a journey beyond the S&P 500, with great insights into India and China as the most exciting large emerging markets.
And in Magic Markets, you can learn more about how private capital deals are structured, particularly with the use of mezzanine finance or what Westbrooke likes to call hybrid capital.
As usual on a Friday, the team at DealMakers is here with their excellent summaries of local M&A, local corporate finance and deals in Africa. There's also a piece on King V and the future of corporate governance in South Africa.
Finally, as you plan your week next week, be sure to make time on Thursday to attend Unlock the Stock with Capital Appreciation. This is a really interesting company with a payments division that is doing very well and a software division that is trying to recover. If you attend the live event, you can pose your questions to the management team. Best of all, attendance is free! You just need to register here>>>
Have a great Friday and we will see you on Sunday for Weekender! |
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SATRIX PODCAST: Beyond the S&P 500 - emerging market opportunities |
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| | With half of 2025 in the rearview mirror, it's been a period in which investors have actively looked for opportunities beyond the United States. That's good news not just for alternatives like Europe, but emerging markets like India and China as well.
Kingsley Williams joined me to talk about the key drivers and opportunities in each of those markets.
Enjoy the podcast and transcript at this link>>> |
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GHOST WRAP: The JSE Winners' Club in 2025 |
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| | At the halfway mark in 2025, we've lived through some huge geopolitical shifts. The world's gaze has shifted beyond just the US market.
Many investors choose to stick with what they know in times like these. This means homegrown favourites on the JSE.
But which stocks have been the big winners thus far this year, and what do they have in common?
Enjoy it here>>> |
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PODCAST: Capital Markets in South Africa - the Think Big South Africa Competition |
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PSG Financial Services is the proud sponsor of the Think Big South Africa competition, in collaboration with Economic Research Southern Africa (ERSA).
PSG wants to encourage South Africans to get involved in their country at the highest level, bringing forward policy ideas and constructive solutions to drive conversations and real change in our country. PSG CEO Francois Gouws joined me to explain why they are such strong supporters of this initiative.
Enjoy it here>>> |
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GHOST BITES - Making sense of SENS on the local market |
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| | AECI has announced a few asset disposals that the market loved, but they've also hinted at further acquisitions as well. Redefine is selling Rosebank Corner. Get the details in Ghost Bites>>> |
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Unlock the Stock - Attacq |
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In the 57th edition of Unlock the Stock, Attacq returned to the platform to talk through their recent numbers and strategy, including interesting trends in the property market across areas like retail and office space. The recording of the management presentation and interactive Q&A is available at this link>>> |
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DOMINIQUE OLIVIER - The boxer and the million-dollar burger |
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| | What did George Foreman, the man who once flattened Joe Frazier in two rounds, know about small kitchen appliances? Apparently, quite a lot - at least when it came to selling them. Dominique Olivier tells the story of George Foreman Grill, a wild success for Salton that made the boxer fabulously wealthy. Read it here>>> |
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INVESTEC PODCAST: No Ordinary Wednesday - How South Africa can shift gears for growth |
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| | South Africa has spent more than a decade in economic drift. So, how do we get back on track? In this episode of No Ordinary Wednesday, Jeremy Maggs is joined by Cumesh Moodliar, CEO of Investec South Africa, and Osagyefo Mazwai, Investment Strategist at Investec Wealth & Investment International, to unpack the hard truths, and outline a roadmap to recovery and long-term prosperity. Enjoy it here>>> |
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International Business Snippet: |
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Netflix just keep going from strength to strength. Revenue growth was 16% in the second quarter, beating estimates along the way. They even raised their full-year revenue guidance! They no longer release subscriber numbers, choosing instead to focus on revenue growth as they try to show the market that they can optimise the subscriber base at different price points. It's clearly working.
I was surprised to see half-decent numbers from PepsiCo, with the company hoping to sneak into the low end of the long-term organic revenue growth goal of 4% to 6%. They managed to beat estimates, but they did it with net sales growth of 1%. Talk about low expectations! A 7.5% rally in the share price took the year-to-date drop to 3.2%.
In Magic Markets Premium this week, our subscribers got to enjoy our work on Exor. Supposedly Europe's Berkshire Hathaway, the truth is that Exor's story is far too dependent on Ferrari. And oddly, they've been trimming that exposure in favour of far less appealing choices. This is part of our efforts to show the opportunities in Europe - warts and all. We return to the US from next week, as we are now in US earnings season. The entire research library in Magic Markets Premium is available for just R99/month. |
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Magic Markets: Hybrid Capital - Best of Both Worlds (with Westbrooke) |
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| | Westbrooke’s approach makes use of various funding mechanisms, with hybrid capital as a particular favourite. This aims for debt-like risk and equity-like returns, while providing capital for lower- to mid-market deals in markets like the UK.
Dino Zuccollo, Head of Investor Solutions at Westbrooke Alternative Asset Management, joined us on this episode to update us on the alternative asset market, recent deal trends across markets and the exciting news of the R3.8 billion WDO UK Fund II, raised by Westbrooke in partnership with RMB. Find it here>>> |
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Macroeconomic indicators and macro update |
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US benchmarks, the S&P 500 and Nasdaq, closed at record highs overnight as strong corporate earnings helped lift investor sentiment. Futures markets are pointing to further gains this morning, helped by Netflix’s earnings which came in better than consensus estimates.
European index futures are also higher following US gains, while most Asian markets are up except for Japan’s Nikkei, which remains cautious ahead of Sunday’s elections.
The dollar is trading flat but is set for a second consecutive weekly gain against major currencies, supported by strong US economic data suggesting the Federal Reserve may hold off on cutting interest rates for now.
Gold prices were unchanged on Friday but are on course for a weekly decline due to a stronger dollar and solid economic data.
Oil prices are up again this morning after gaining yesterday, driven by concerns that drone attacks on northern Iraqi oil fields could disrupt supply.
The rand has firmed slightly, and the JSE All Share Index is expected to open positively today.
This update is provided by Shaun Murison. Connect with him on LinkedIn here.
Key Indicators: USD/ZAR R17.74/$ | US 10yr 4.43% | Gold $3,347/oz | Platinum $1,482/oz | Brent Crude $67.71 |
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