| Good morning Voornaam, Yesterday was all about the mining sector. We begin with Anglo American, which has taken another important step in cleaning up its group. The nickel operations are being sold for up to $500 million, adding to the substantial recently announced sale of the steelmaking coal business.
The other big name in mining is of course BHP. It looks like HEPS and the dividend per share had a fight and aren't talking to each other anymore, with those metrics heading in opposite directions. The market hasn't appreciated the major drop in the payout ratio (which means that BHP is retaining more cash vs. paying it out to shareholders).
Still in earnings news, Kumba Iron Ore is doing the best that it can under the circumstances. Beholden to both commodity prices and the ability of Transnet to run a train, there's only so much they can control.
DRDGOLD has been enjoying the strong gold price, which lifted their earnings at a time when production growth has been slow.
Get these details and the Nibbles in Ghost Bites this morning>>>
For more insights from the mining (and construction) sector, Afrimat will be presenting on Unlock the Stock next week Thursday. Get it in your diaries nice and early and remember to register to attend here>>>
ETFs are a popular choice in portfolios and with good reason. They should form the backbone of any equity portfolio, giving investors broad market exposure at a low cost. The team from Satrix has brought us some fascinating stats this morning about growth in ETFs globally and locally. Get them in this article>>>
The Budget Speech is today! To help you understand what to expect and what to look out for, Investec's latest episode of No Ordinary Wednesday features Annabel Bishop, Tertia Jacobs and Chris Holdsworth in conversation with media stalwart Jeremy Maggs. You need to invest just over 20 minutes of your time to make sure you are well prepared for Finance Minister Enoch Godongwana's big day. Enjoy it here>>>
Have a great day! |
|---|
|
|---|
| INVESTEC: International Opportunities Limited - a Chinese equity structured product |
|---|
|
|---|
| China is a land that is fraught with risk and brimming with opportunity. With enhanced upside as well as downside protection, International Opportunities Limited is a structured product that seeks to balance the risks and rewards available in Chinese equity markets.
International Opportunities Limited offers 1.3x geared exposure to the CSI 300 Index, capped at 60% growth for a maximum return of 78% in USD. In addition, there is 100% capital protection at maturity in USD.
Japie Lubbe of Investec Structured Products joined me to discuss the structure in detail. Get it here>>> |
|---|
| |
|---|
| SATRIX: 2025 kick-off and fresh views on rent vs. buy |
|---|
|
|---|
| | | Covering a range of personal finance topics and emerging trends in investing, your 2025 kick-off with Duma Mxenge from Satrix is here.
And of course, we couldn't resist talking about property. This led to an in-depth discussion on how I'm approaching the rent vs. buy conundrum.
Enjoy it here>>> |
|---|
|
|---|
| GHOST WRAP: Retailers on sale on the JSE - a review of the first few weeks of 2025 |
|---|
|
|---|
| The retail sector got off to a very poor start in 2025. With practically the entire sector down, are there stocks that were punished more than they should've been?
This podcast is a useful summary of recent retail updates across the clothing and grocery sectors, as well as other relevant areas.
You can find the recording and the transcript (with charts) at this link>>> |
|---|
| |
|---|
| GHOST BITES - Making sense of SENS on the local market |
|---|
|
|---|
| | | Anglo American, BHP, DRDGOLD and Kumba Iron Ore contributed to a very busy day of mining news. Assura has rejected approaches from bidders. Get the details in Ghost Bites>>> |
|---|
|
|---|
| DOMINIQUE OLIVIER - Woodstock '99: a recipe for a riot |
|---|
|
|---|
| What do you get when you combine an unused airforce base, 220,000 teenagers, a couple of angry nu metal bands and some very expensive water? Part concert, part scene from an apocalyptic movie, the Woodstock festival that took place in 1999 was practically doomed from the start. Read it here>>> |
|---|
| |
|---|
| Budget 2025 - what to expect |
|---|
|
|---|
| | | In this special edition of No Ordinary Wednesday, Investec experts Chief Economist Annabel Bishop, Treasury Economist Tertia Jacobs and Chief Investment Strategist Chris Holdsworth share their predictions for Budget 2025. Find this insightful episode here>>> |
|---|
|
|---|
| International Business Snippet: |
|---|
|
|---|
| Intel closed 16% higher yesterday after reports came out that both Broadcom and Taiwan Semiconductor (TSMC) are considering making a bid for Intel. Interestingly, the companies are reportedly interested in different parts of Intel. Broadcom like the chip design and marketing segment, while TSMC is more keen on Intel's factories.
Intel has been a messy story of note, with wild underperformance vs. peers in the chip sector. It's had a great month though, up 25.8%.
Our latest research in Magic Markets Premium is on ASML, the company in the semiconductor industry that you've never heard of. This is because they sit further up the value chain, supplying the machines that actually manufacture the chips! They even have a monopoly in certain technologies. Our subscribers can enjoy our detailed work on this company as an alternative way to play the AI theme. |
|---|
|
|---|
| Magic Markets: Private markets are a hive of activity |
|---|
|
|---|
| | | Magic Markets: For companies seeking capital, founders wanting to exit their stake and investors who desire diversification and solid returns, private debt and equity markets offer a vibrant ecosystem. Dino Zuccollo of Westbrooke Alternative Asset Management joined us to discuss trends and strategies in this asset class, along with general levels of adoption by investors. Get the insights in this podcast>>> |
|---|
|
|---|
| Global equity markets are trading flat to slightly higher overnight during what has been a relatively quiet period in terms of economic data. Today's key events include UK inflation figures this morning and the release of Federal Open Market Committee (FOMC) meeting minutes this evening.
The dollar index and US Treasury yields are showing minimal movement, lacking clear direction in the short term.
The rand is also trading in a sideways fashion, ahead of this morning's local CPI inflation data scheduled for release.
The JSE All-Share Index is expected to open flat this morning after reaching new high territory yesterday.
Oil prices have edged higher as severe weather in the US raises concerns about potential supply disruptions. However, gains are being limited by optimism surrounding a possible European ceasefire that could bring more Russian crude to global markets.
Gold continues to test record highs, finding support from central bank buying activity and persistent trade war concerns.
On the local front, traders will want to keep an eye out for CPI inflation data out at 10am this morning.
Key Indicators: USD/ZAR R18.39/$ | US 10yr 4.54% | Gold $2,934/oz | Platinum $979/oz | Brent Crude $75.60
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. |
|---|
|
|---|
|
|
