| Good morning Voornaam, Exxaro (known for its coal business) has taken an interesting step, announcing a substantial manganese acquisition that will see them part with an expected base amount of R11.7 billion. That's a big number, so they aren't messing around with this diversification play.
In the insurance space, Santam has shown us that the good times have continued from last year. All the metrics are doing exactly what shareholders want them to do. For now at least, there's plenty of momentum to keep driving the share price higher.
Sticking with the good news, Altron has given much tighter earnings guidance that shows how much better things are at the group these days. Over at Bytes, they banked a solid year of growth, but the guidance for operating profit growth in the coming year isn't as exciting. When trading on a high multiple, that's a risk.
Other updates include Octodec grinding out a small amount of growth in its distributable earnings, as well as Grindrod getting out of the marine fuel trading business and thus finishing its journey with material non-core assets in the group. That's been quite the cleaning up process!
Finally, there's a mining conference on the go in Spain that led to the release of presentations by BHP and South32. These presentations are helpful as they show you the different focus areas of the various groups.
These details and the Nibbles are available in Ghost Bites at this link>>>
Ever wondered what the behind-the-scenes world of your favourite ETF provider looks like? How does Satrix build and operate the ETFs in such a way that they track the underlying index with minimal tracking errors and fees? Lauren Jacobs of Satrix joined me recently to talk about a day in the life of a portfolio manager in the ETF space. It's a genuinely fascinating chat that you can enjoy here>>>
Warren Buffett is famous for a reason. The latest Magic Markets podcast was a lovely opportunity to dig into some of the recent nuggets from Omaha, where Buffett was his usual entertaining and insightful self, before surprising everyone (including his successor, Greg Abel) with the news that he will be stepping down as CEO at the end of this year. Learn more here>>>
How do you feel when you read that something is Made in China? Although South Africans seem to be highly receptive to Chinese cars, the same can't be said for everywhere in the world. In fact, using MSG as an example, Dominique Olivier demonstrates that Chinese bias is a problem in many markets. Learn about it here>>>
Finally, be sure to register for Astoria on Unlock the Stock on 15th May at 12pm. Attendance is free as always, but you must register here>>>
Have a great day! |
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| SATRIX: A Day in the Life of a Portfolio Manager at Satrix |
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| | | Ever wondered how the nuts and bolts of ETFs work? What goes into index tracking and making sure that it is achieved at the lowest possible cost? And are all indices created equal from a complexity perspective?
Lauren Jacobs (Senior Portfolio Manager at Satrix) shows you what a day in the life of a portfolio manager looks like.
Get ready to learn and be inspired at this link>>> |
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| GHOST WRAP: April's droppers and whoppers |
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| There may have been many public holidays in April, but that didn't stop the market from reacting to the broader geopolitical turmoil. With recession concerns as a key theme, which stocks did well and which ones delivered a nasty drop? This podcast is an overview of recent big share price moves among larger local companies on the JSE, revealing some interesting trends. Ghost Wrap is brought to you by Forvis Mazars. You can find the recording and the transcript at this link>>> |
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| GHOST BITES - Making sense of SENS on the local market |
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| | | Exxaro announced a large manganese acquisition. Santam's momentum continues. Altron had a great year. Bytes grew strongly but has flagged slower growth ahead. Grindrod is out of its last non-core asset. BHP and South32 released useful conference presentations. Get the details in Ghost Bites>>> |
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| Unlock the Stock - CA Sales Holdings |
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| In the 51st edition of Unlock the Stock, regular attendee CA Sales Holdings returned to the platform to talk about the recent performance and strategic focus areas for the group. The recording of the management presentation and interactive Q&A is available at this link>>> |
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| DOMINIQUE OLIVIER - Now is a great time to question our Chinese bias |
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| | | A wave of TikToks from Chinese factory owners is reshaping how we think about where the things we buy come from. By casually revealing that many brandnamed products are made in Chinese factories, these videos are forcing a reckoning with a deeper bias: our enduring discomfort with the words “Made in China”. Dominique Olivier uses MSG as a great example of the bias in this excellent piece>>> |
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| INVESTEC PODCAST: USE Inc - a superpower stumbles |
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| | | With the recent global markets turmoil, driven by US President Donald Trump’s tariffs policies, questions are being asked about the future of US exceptionalism. Jeremy Maggs hosts this episode with Annelise Peers and Richard Cardo of Investec. Get the insights in this podcast>>> |
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| International Business Snippet: |
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| I remember thinking about job security when I made the decision to leave corporate, weighing it up against the potential upside of starting this business. When I read about companies like Microsoft cutting 3% of their workforce purely to remove management layers (i.e. not performanced-linked at all), I'm reminded that corporates offer job security in the same way that classic cars offer a stress-free ownership experience. CrowdStrike announced last week that they are letting 5% of the workforce go.
Adulting is a scary thing at times. If the tech companies are cutting back, then you can imagine how things might play out in other sectors. Burberry has also announced cuts, with 1,700 global roles expected to be affected over the next couple of years. Their sales have been heading firmly in the wrong direction and concerns about the US market and the potential impact of tariffs aren't helping.
And finally, some news from insurers of last resort - the reinsurers, who provide insurance to the insurance companies. When there are large natural disasters, this is where the loss eventually lands. Between Munich Re and Hannover Re, the losses from the LA wildfires come to $1.9 billion. Both companies are listed in Germany. And no, I'm not sure why Germany plays such a major global role in reinsurance!
This week in Magic Markets Premium, we've covered Waste Management. This company probably isn't on your radar, yet it represents a solid utility-style investment profile with a wide moat. As our subscribers will find out in the research, you need to pay a beefy multiple for that profile. But is it still appealing? |
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| Magic Markets: Mesh.Trade - Unlocking Private Markets |
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| | | Magic Markets: As the recent trend in IPOs and delistings on public markets tells us, an increasing number of companies are looking to private markets for their capital raising needs. This means that retail investors are being shut out of these opportunities, which is particularly problematic as these early-stage opportunities usually offer the highest potential returns.
Mesh.Trade is committed to increasing access for investors, which is why the platform is designed to enable issuers to raise debt and/or equity funding.
Connie Bloem joined us to talk about why access to good quality private assets is so important in the South African market. To learn more, listen to this podcast>>> |
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| Macroeconomic indicators and IG Markets macro update |
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| Global equity markets have largely recovered the losses incurred following US President Donald Trump’s imposition of ‘Liberation Day’ tariffs on April 2nd. Investors are now optimistic that further trade agreements will build on the recent deals outlined with China and Britain. US equities have returned to positive territory for the year, while European stocks have risen above levels seen before the initial tariff announcements.
Wall Street’s rally has continued after the US and China agreed to a significant temporary reduction in tariffs, easing trade tensions and improving market sentiment. This agreement reduces reciprocal tariffs drastically - from over 100% combined rates to just 10% for a 90-day period starting May 14, 2025 - with the US lowering its tariffs on Chinese goods from 145% to 30%, and China cutting its tariffs on US imports from 125% to 10%. Additionally, China agreed to suspend non-tariff countermeasures imposed since early April. These moves have been seen as a major step toward de-escalating the trade war and paving the way for broader negotiations.
Supporting the market optimism, April’s US inflation data came in lower than expected, easing fears of stagflation and encouraging further gains. Technology stocks have regained momentum, boosted by major artificial intelligence deals involving Nvidia and Advanced Micro Devices in the Middle East, coinciding with Trump’s visit to Saudi Arabia.
In Asia, Hong Kong and Chinese stock indices are advancing, led by technology shares, as investors shift focus toward corporate earnings amid improving U.S.-China relations. The US dollar index declined 0.67% on Tuesday following the softer inflation report and is trading flat this morning.
In turn we have seen the rand recouping losses against the dollar overnight and are expecting a positive start for the JSE All-Share Index this morning.
Gold prices, which rose yesterday on the back of a weaker dollar, have reversed course this morning as safe-haven demand diminishes. Meanwhile, oil prices remain near two-week highs in early Wednesday trading, supported by the tariff reduction deal and the weaker dollar environment.
This combination of easing trade tensions, supportive macroeconomic data, and sector-specific catalysts is fostering a positive environment for global equities and commodities currently.
Key Indicators: USD/ZAR R18.27/$ | US 10yr 4.47% | Gold $3,225/oz | Platinum $997/oz | Brent Crude $66.40
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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