| Good morning Voornaam, After a weekend of watching South Africans bliksem people on the global stage, it's time to get back to work and bliksem your inbox instead. Certainly less glamorous, but necessary.
Friday was a bit of a breather on the local market, so there are only a few stories worth sinking your teeth into. One is KAP, which hopefully has the worst behind it now. The share price action is rather interesting there. Another is Master Drilling, where HEPS looks good but the impairments are concerning, especially when you see what they relate to. There's also something important on Brait in the Little Bites, as well as changes to Copper 360's earnings. I also wouldn't ignore the selling by Standard Bank directors, especially in the context of what is going on in China. Read it all here>>>
I noticed that the new piece from Satrix was really popular on Friday, so I'll share it again here in case you missed it. It deals with the importance of tax-free savings accounts, something that I absolutely believe should be the starting point for any wealth creation journey in the market. It also deals with how the concept should actually be rebranded, another point that I fully agree with. You can read Duma Mxenge's thoughts in this article>>
You hopefully noticed me talking about price action in the context of KAP above. Price action is important for every company, as it shows us what the mood of the market is at any point in time. In turn, this guides trading strategies related to specific opportunities. To learn about different strategies (like momentum and range trading), listen to Episode 4 of The Trader's Handbook, my collaboration with IG Markets South Africa. Find it here>>>
Finally, Dominique Olivier's latest piece is a fascinating celebration of four interesting women who made significant impacts in their field: Elizabeth Cochrane (journalism), Wangari Maathai (politics), Dolly Parton (music and then literacy) and Allyson Felix (athletics). I loved reading it and I suspect that you will as well. Read it here>>>
Have a great Monday! |
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| FEATURED: How to Research Stocks |
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| Magic Markets: Everyone talks about researching stocks and the importance of research, but how do you actually go about doing it? In the latest Magic Markets podcast, we talk about our approach to research. Read it here>>> |
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| FEATURED: The Trader's Handbook Ep 4 |
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| | | IG Markets Episode 4: The markets are as varied as they are beautiful, so it's no surprise that there are various different trading strategies available. Get an overview of the approaches taken by traders in the latest episode at this link>>> |
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| FEATURED: Unlocking the true value of TFSAs for South Africans |
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| | | Satrix: In an article that I could not agree with more, Duma Mxenge talks about the importance of tax-free savings accounts and why they could be rebranded to make it clearer that this should be the cornerstone of an investment journey. Get his views in this excellent article>>> |
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| FEATURED: The rise of self-directed investing |
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| Invested Podcast: As part of the Investec No Ordinary Wednesday series, you can enjoy Jeremy Maggs in conversation with Tinus Rautenbach, head of Investec's online platform Clarity, as they discuss the rise of self-directed investing. Find it here>>> |
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| Ghost Bites: The latest on Copper 360, KAP and Master Drilling, along with various Little Bites in Ghost Bites here>>> |
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| | | Ghost Wrap: With thanks to Forvis Mazars, this podcast brings you the latest on Italtile, Cashbuild, Quilter and the gold duo of AngloGold and Gold Fields, all in just a few minutes in the Ghost Wrap podcast. |
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| Unlock the Stock: In the latest session, Tharisa Plc returned to the platform for an update on the company performance and strategy going forward in PGMs and chrome. You can watch the recording here>>> |
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| Nico Katzke of Satrix: The GNU has driven significant optimism around the South African market. To help us understand where this is playing out and how the carry trade protects the rand, Nico Katzke joined me on Ghost Stories. Find it here>>> |
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| Magic Markets: What is the right way to prepare for a major sell-down in the market, or even a crash? It's all about research and watchlists, as well as having money that is ready to go into those dips. We discuss these concepts in this podcast>>> |
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| International Business Snippet: |
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| China has been in the news a lot this year, perhaps even more than usual. The slowdown there is impacting a number of global businesses, as China is a gigantic consumer market. There are also large groups focused mainly on China, like Alibaba and JD.com, both of whom released numbers last week.
Alibaba's revenue from merchant commissions and advertising in China was up just 1% for the quarter, which is absolutely pedestrian for China (and any emerging market for that matter). Direct sales fell by 9%, which is even worse. There are other signs of trouble, like lower average order values at JD.com
Over at Tencent, which owns WeChat (and which is of course the cornerstone of the Prosus / Naspers group), growth slowed down in financial transactions. That also speaks to lower spending.
The message is clear: be cautious when it comes to Chinese growth.
We are covering Walmart in Magic Markets Premium this week. For subscribers to Magic Markets Premium, the investment of R99/month is the best investment they can make. |
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| IG Morning Call: daily macroeconomic update |
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| While risk appetite has improved over the last week to lift global equity markets higher, index futures in the US and Europe are suggesting some profit taking. Japan’s Nikkei Index is trading significantly lower this morning after 5 days of consecutive gains.
In line with global markets, we are expecting a slightly softer open today on the JSE All-Share Index.
The dollar has weakened, most notably against the yen. The rand has continued to gain, reaching its best levels against the greenback in more than a year.
Oil prices are trading flat to marginally lower this morning.
Gold is hovering near the all-time highs reached on Friday, gaining support from the softer dollar.
There is no high impact economic data scheduled for today.
Key Indicators: USD/ZAR R17.93/$ | US 10yr 3.87% | Gold $2,500/oz | Platinum $955/oz | Brent Crude $78.89
The macroeconomic update is based on IG's morning call update |
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