Happy Friday!
In today's company updates, you need to read Libstar very carefully. The revenue growth rate that got the market excited yesterday is artificially boosted by a 21-week period being compared to 20-week period. As I explain in Ghost Bites, the true growth rate is nowhere near as exciting as things appear at first blush.
Standard Bank is another company where growth isn't of the highest quality right now. Although earnings are up by double digits, it's thanks to non-interest revenue rather than the traditional banking business. Combined with recent selling by directors, I would tread carefully here.
There are no such issues at STADIO, where growth is being driven by exactly what you want to see: higher student numbers.
And finally, PK Investments has made another move at MAS and has now made it clear that the cash in the joint venture is the carrot being dangled in front of MAS shareholders here. If it's true that PK can do this and if I understand it all correctly, then it really does seem as though the joint venture was negotiated by sheep on one side of the table and wolves on the other.
Get the details on all these updates and the Nibbles in Ghost Bites at this
link>>>
As you look ahead to your diary next week, be sure to make time on Thursday for property group Attacq. They will be on Unlock the Stock at midday on 26th June. As ever, attendance is free, but you need to register here to attend.
In a country with such a high unemployment rate, it's amazing to think of talent scarcity as a concept. Of course, unemployment is an overall measure, while scarcity relates to specific skills and the gap between supply and demand for those skills. Forvis Mazars in South Africa has released many great insights in their C-Suite Barometer: Outlook 2025 report. In this piece, Daniella Frank and Susan Truter take you through the skills shortage insights.
As is the case most Fridays, we have the excellent DealMakers content to finish off the week. In addition to the usual summaries of South African M&A, South African corporate finance and deals in the rest of Africa, there are three insightful pieces to enjoy. The first is on the importance of regulatory predictability in Africa, the second is on climate change in Africa and related investment opportunities and the third is on the concept of "sandbagging" when it comes to sellers giving warranties in deals.
Finally, if you're looking for something to watch this weekend, I highly recommend David Attenborough's Ocean. Not only is it beautifully shot (obviously), but it really forces you to think about your own consumption and food traceability. Most of all, it offers practical solutions for the world's oceans. Ocean is currently streaming on Disney+.
Have a lovely day and we will see you on Sunday for Weekender! |
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FORVIS MAZARS: Talent Scarcity: How South African Businesses can Overcome the Skills Shortage |
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| | With talent rising as a strategic priority in 2025, just under half of organisations in the Forvis Mazars C-Suite Barometer: Outlook 2025 continue to report a struggle to recruit talented people, with the emphasis shifting to high-quality employees at more junior levels. Daniella Frank and Susan Truter give more details. Get the details in Ghost Bites>>> |
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SATRIX: Life after COVID - a five-year review of the markets |
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| | Five years ago, the world was a wild place. We were "staying home and staying safe" - and global central banks were cutting rates dramatically in an effort to stimulate economies under impossible circumstances.
With a great selection of statistics to share with the listeners, Siyabulela Nomoyi of Satrix was a wealth of knowledge in this podcast about how markets have performed in recent years, particularly in terms of which indices did well and which were disappointing.
Get a healthy dose of market insights at this link>>> |
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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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| | Libstar's results aren't nearly as good as they might first appear. STADIO is growing strongly. Standard Bank is up, but needs better banking conditions. The games continue at MAS. Get the details in Ghost Bites>>> |
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Unlock the Stock - Greencoat Renewables |
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In the 55th edition of Unlock the Stock, Greencoat Renewables joined us for the first time ahead of their debut on the JSE. The recording of the management presentation and interactive Q&A is available at this link>>> |
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DOMINIQUE OLIVIER - "Big Ostrich": feathers, food and a high-flying future |
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| | Ostriches might not fly, but their numbers (and their impact) are soaring. From dusty Karoo farms to global sustainability debates, this big bird is quietly paving the future of meat production. Welcome to the surprising world of ostrich farming, as explained by Dominique Olivier in this piece>>> |
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INVESTEC PODCAST: No Ordinary Wednesday - a 20-year perspective on global investing |
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| | Twenty years on, the managers of the Investec UCITS World Axis Core Fund reflect on what two decades of global investing have taught them and what investors should expect next. Join Investec Investment Management’s Head of Multi-Manager Investments Ryan Friedman and Fund Manager Bronwen Trower in conversation with Jeremy Maggs in this podcast>>> |
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International Business Snippet: |
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Given the terrible Air India disaster, it's not surprising that Boeing is said to have kept a low profile at the Paris Air Show. Airbus, on the other hand, announced nearly $21 billion in new deals (as reported by Reuters here). Despite this, Boeing's share price is up 15% year-to-date and Airbus is flat. The tariff environment isn't great for Airbus and would likely be supportive for Boeing.
There's bad news for Alphabet (owner of Google) in Europe, with an advisor to the European Court of Justice proposing that Google's appeal against a record EUR4.1 billion fine be dismissed. Of course, what really counts is what the judges eventually decide.
Recent research in Magic Markets Premium has covered Intel, Waste Management (possibly the best company you've never heard of), Novo Nordisk, Simon Property Group, TJX and NVIDIA. Our focus is on giving you broad exposure to global stocks, with enough underlying detail to help you make better decisions and learn tons along the way. The entire library is available for just R99/month, a deliberate strategy to make it as accessible as possible. Invest in yourself and give it a try! |
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Magic Markets: Mesh.Trade and the Titans |
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| | Magic Markets listeners have become familiar with AnBro’s approach to building global equity portfolios with different mandates. Titans is just one such example, focusing on an equal-weighted portfolio of best-of-breed stocks across various sectors.
With Titans now available on Mesh.Trade’s platform alongside the other AnBro offerings, it was the perfect opportunity for Craig Antonie of AnBro to join us to talk about the fund strategy, accompanied by Connie Bloem of Mesh.Trade to talk about the platform offering.
We covered these topics here>>> |
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Macroeconomic indicators and macro update |
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President Donald Trump indicated that a decision on whether to launch a US attack on Iran could take another two weeks, prompting markets to mostly relax but stay cautious amid ongoing Middle East tensions.
Several European central banks adopted a dovish stance: Norway’s central bank cut interest rates for the first time since 2020, lowering the rate to 4.25% and signaling more cuts ahead; the Swiss National Bank reduced rates to zero and left open the possibility of negative rates; meanwhile, the Bank of England kept rates steady but suggested further easing may be necessary in the future.
US and European futures are trading higher, while Asia-Pacific markets are mixed.
Japanese and Australian indices are lower, while Chinese benchmarks are higher on the day.
The US dollar weakened overnight but is expected to finish the week stronger, helping the South African rand recover below R18 per dollar. The JSE All-Share Index is expected to open higher, reflecting positive momentum from US and European futures.
Oil prices have pulled back from recent peaks, supported by Trump’s two-week delay in deciding on military action related to the Iran-Israel conflict, though oil remains on track for a weekly gain. Gold prices continued to slide despite the softer dollar..
This update is provided by Shaun Murison. Connect with him on LinkedIn here.
Key Indicators: USD/ZAR R18.03/$ | US 10yr 4.37% | Gold $3,345/oz | Platinum $1,279/oz | Brent Crude $72.19 |
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