| Good morning Voornaam, This week, I did some digging into China vs. India and the returns achieved by investors in recent years. The outperformance in India has been staggering, with its more business-friendly approach and services-based economy really shining in the aftermath of the pandemic. There are good reasons to believe in the Indian growth story. There are also reasons to be cautious after such a strong rally. The Investec Rand India Accelerator is built with all this in mind and you can learn about it in this podcast with Brian McMillan of Investec Structured Products. Of course, there's a full transcript available as well.
Speaking of growth, Lesaka Technologies has to be one of the more interesting companies on the local market. I love it when a company points to other emerging markets as a good example of the kind of market penetration that might be achieved in South Africa. To see what I'm talking about, make time to watch the management presentation and Q&A on Unlock the Stock, available here>>>
Flicking across to company news, Calgro M3 shifted focus in the latest period to more expensive housing units and significantly increased its gross margin along the way. Despite a sharp drop in revenue, this was enough to drive substantial growth in earnings.
There was plenty of other news on the day as well, including Mantengu Mining clarifying its Blue Ridge deal, Merafe's production heading the right way, Novus getting an important contract extension, Quantum Foods being profitable again, Sasfin flagging a horrible period and Wesizwe Platinum giving its auditors a few sleepless nights about its going concern status.
These stories plus all the director dealings etc. in the Nibbles section are available in Ghost Bites at this link>>>
For the budding traders among you, be sure to listen to the latest episode of The Trader's Handbook, my podcast series with IG Markets South Africa. In Episode 8, we talked about index trading strategies and how these can be more efficient for active traders. Of course, we covered some technical analysis tools as well, along with various other insights. Enjoy it here>>>
Have a great start to your week and don't forget to register for Calgro M3 on Unlock the Stock on Thursday - the last time that the outgoing management team will be presenting on the platform. |
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| FEATURED: The Investec Rand India Accelerator |
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| | | The Investec Rand India Accelerator offers geared exposure to growth in the iShares MSCI India ETF over the 3.6-year term. The ETF tracks the large and midcap Indian market, covering 85% of the India equity universe. Listed on the JSE, it offers 1.5x geared exposure to the ETF capped at 40%, for a maximum return of 60% in Rands. In addition, the Accelerator provides a high degree of capital protection.
To explain the opportunities and risks of this product, Brian McMillan of Investec Structured Products joined me on this podcast. |
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| FEATURED: The Trader's Handbook Ep 8 |
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| | | IG Markets Episode 8: In Episode 8 of The Trader’s Handbook, learn why indices are an attractive option for traders, providing broad market exposure, lower risk compared to single stocks and significant cost advantages. We also discussed practical tips on technical indicators such as RSI and stochastic oscillators. Enjoy it here>>> |
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| FEATURED: Does factor investing work? |
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| Satrix: Factor investing takes ETFs to the next level. Instead of tracking a stock index (like the JSE Top 40), these ETFs have a set of rules based on investment fundamentals like valuation multiples or even levels of debt. The sky is the limit with the creativity that goes into these factors, but do they actually work?
To unpack these types of ETFs and the thinking behind them, Nico Katzke of Satrix joined me for an insightful discussion. Find it here>>> |
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| Key market themes locally and abroad with Satrix |
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| Satrix: There are many sources of risk that might concern investors currently – making the case for diversification as strong today as it ever was. Satrix highlights some of these risks and the opportunities they present. Find it here>>> |
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| Global Mobility - Common Mistakes by Employers and Employees |
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| | | Ghost Stories podcast: Elzahne Henn of Forvis Mazars in South Africa sheds light on the common mistakes and misconceptions related to cross-border employment. These insights are valuable for employers and employees alike. Enjoy it here>>> |
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| What does a tyre business know about fine dining? |
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| Dominique Olivier: The Michelin Guide is like the Oscars of the restaurant world. Chefs dream of them, diners flock to them, and some restaurants even wish they could send them back. But how did we end up in a world where a tyre company’s opinion of your dinner is worth so much?. Find
out here>>> |
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| Ghost Bites - local company news: |
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| | | Ghost Bites: The latest on Calgro M3, Mantengu Mining, Merafe, Novus, Quantum Foods, Sasfin, Wesizwe Platinum and numerous Nibbles in Ghost Bites here>>> |
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| Unlock the Stock: Lesaka Technologies |
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| Unlock the Stock: Watch the recording of the management presentation by the Lesaka Technologies team, along with the vibrant Q&A session on Unlock the Stock. Find it here>>> |
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| Investec podcast: responsible investing |
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| | | Investec Wealth & Investment International has launched a comprehensive guidebook on responsible investing. In the latest episode of the No Ordinary Wednesday, Jeremy Maggs speaks to the authors, Boipelo Rabothata and Maxine Gray. Enjoy it here>>> |
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| International Business Snippet: |
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| In case you're wondering, Nvidia is still making people even richer. The company is trading at record highs, with its competitors riding on its coattails on the market. The wobbly in August is now a distant memory, with the share price up 186% year-to-date. Crazy as the valuation may seem, this is a good example of why being short a great stock purely based on valuation is a fool's errand. If you're going short, don't do it on one of the most exciting companies in the world. It's just not worth fighting the market.
With India as a theme today, Hyundai Motor India sold almost $1bn in shares to institutional investors in the country's largest share offering. The Indian market is a vibrant place to raise capital at the moment, surpassing last year's capital raising number by some margin. Although this is often a sign of a market that is too hot, I think there's enough growth in India to keep the story interesting.
Our latest research in Magic Markets Premium is on Nike. We've been bearish on that stock since the first time we covered it in Magic Markets Premium and time has proven that approach to be correct. How do we feel now? You'll find out in the latest report for our subscribers this week. |
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| Magic Markets: The China Effect |
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| | | Magic Markets: It's not easy to understand the stimulus that we are now seeing in China. The impact on equity portfolios is substantial, as China is such a huge market globally.
Justine Brophy of AnBro joined us to make more sense of what's going on there. Get it here>>> |
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| IG Markets Morning Call: daily macroeconomic update |
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| As US earnings season takes full flight we have seen the Dow Jones and S&P 500 moving into new high territory. European markets are buoyant as well ahead of what is expected to be a 25 basis point rate cut by the European Central Bank (ECB) on Thursday.
China and Hong Kong’s benchmark indices are however trading in negative territory as markets continue to assess the weekend’s stimulus announcement, which omitted the timing and size of increased borrowing within the region.
On balance we are expecting a positive open for our local bourse the JSE All-Share Index.
The dollar has continued to firm against a broad basket of currencies and in turn the rand is on the back foot this morning.
Oil prices have declined considerably overnight on reports that Israel will not attack Iranian oil facilities in retaliation to the recent ballistic missile attack.
Gold has edged lower on the back of a stronger dollar and some mitigation of geopolitical risk.
Key Indicators: USD/ZAR R17.63/$ | US 10yr 4.09% | Gold $2,642/oz | Platinum $980/oz | Brent Crude $74.40
The macroeconomic update is based on the morning call update by IG Markets |
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