| Good morning Voornaam, If you watched the tennis yesterday, I hope that you enjoyed it as much as I did. That was an incredible display of not just a never-give-up attitude, but such great sportsmanship along the way as well! We've also somehow reached a point in global sport where George Russell gets more TV time during the tennis than the Formula 1. Strange, I know.
Onwards to markets, Friday delivered us a tasty day of news particularly in the clothing and homeware retail sector. Mr Price and The Foschini Group were very helpful data points on not just their own performance, but the broader credit sales trends in South Africa.
In the property sector, we saw updates from Fairvest, Fortress and Spear REIT, as well as MAS with an updated indicative bid from PK Investments. With Hyprop waiting in the wings to make a proper offer for MAS, I must be honest that PK Investments isn't making it difficult for them to offer something more compelling.
Get the details on all these updates and the Nibbles in Ghost Bites at this
link>>>
For insights into the mining sector, specifically PGMs and chrome, you can join Tharisa on Unlock the Stock on Thursday 12th June. This is a wonderful opportunity to engage directly with the management team. Attendance is free but you must register here>>>
Greencoat Renewables is coming to the JSE soon. They joined us recently on Unlock the Stock to explain the appeal of their renewable energy model, focused on Europe. This is a sector that is hard to access for South Africans, so this is an interesting new listing. Watch the recording here>>>
Buckle up for a fantastic new Ghost Stories podcast featuring Siyabulela Nomoyi of Satrix. We decided to do a life-after-COVID show looking back on five years of the markets. Siya dug into the stats and brought excellent insights to the discussion. I cannot recommend this enough. Find it here>>>
Then, for a much longer-term view, the latest episode of Investec No Ordinary Wednesday focuses on a 20-year perspective on global investing. Hosted by Jeremy Maggs, this episode features the managers of thhe Investec UCITS World Axis Core Fund. Enjoy it here>>>
A podcast triple-header is completed by a fresh episode of Magic Markets. Inspired by another triple-header, being three weekends of Formula One races in a row, we decided to talk about Saudi Aramco (and broader oil price trends), as well as the incredible story of Ferrari's share price and how it has nothing to do with their performance in Formula One. Find it here>>>
Have a great Monday! |
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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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| Intengo Market: Nuances of the South African Listed Debt Market |
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| South Africa’s listed debt market presents an intriguing blend of opportunities and challenges. Characterised by its unique structure, participant dynamics, and liquidity constraints, this is a space worth examining for institutional and retail investors alike. This overview is brought to you by Intengo Market. Enjoy it here>>> |
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| GHOST BITES - Making sense of SENS on the local market |
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| | | Mr Price and The Foschini Group reported important numbers in the clothing and homeware sector. In property, we saw numbers from Fairvest and Fortress, while Spear REIT raised cash and MAS saw an improved indicative offer from PK. 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 - Klarna: a canary in the American debt coal mine |
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| | | When lunch needs a payment plan, something’s gone sideways. Klarna’s rollercoaster ride through the American dream is a cautionary tale with extra guac. All is not well in America, as Dominique Olivier explains here>>>
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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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| The difficulties in the alcohol sector continue, with Brown-Forman missing estimates in the fourth quarter. The maker of Jack Daniels struggled with flat full-year sales for the whiskey products, while the tequila and ready-to-drink offerings were both in the red.
Things aren't expected to improve in the 2026 financial year, with the group anticipating single-digit declines in sales and operating income. Of course, one of the big issues here is the risk of reciprocal tariffs, as Jack Daniels is a US product that is sold worldwide.
If you like investing in growth sectors, you can give alcohol a skip these days. Brown-Forman's share price is down 15% thanks to the latest update.
Another company caught in this East - West fight is NVIDIA, where the latest quarter was severely impacted by a ban on certain exports to China. It's easy to forget at times that NVIDIA is a US-based company! Our latest research in Magic Markets Premium focuses on NVIDIA's recent performance, the impact of this ban going forwards and what this means for the share price. To get this research and a new report on global stocks every week, subscribe for just R99/month! |
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| Magic Markets: From analyst to entrepreneur |
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| | | Magic Markets: Muofhe Kwinda is a Magic Markets listener who reached out to us because he has an interesting story. He’s made the leap from being a financial analyst in the investment space to being an entrepreneur, with business interests in mining and agriculture.
We couldn’t resist the temptation to tap into what he’s learnt by moving from desktop analysis of companies into the “real world” where you can actually taste the effect of working capital pressure. There’s a big difference between thinking of a bear case and experiencing the day-to-day operational risks of doing business.
We covered these topics here>>> |
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| Macroeconomic indicators and macro update |
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| On Friday, the market responded positively to US jobs data that showed less of a slowdown than anticipated, easing concerns about the trade war’s impact - at least temporarily. However, this optimism was tempered on Monday by disappointing producer price data from China, which added to evidence that the trade tensions are weighing on the economy.
Asian shares rallied strongly on Monday, building on Friday’s gains on Wall Street. European and US equity futures are suggesting a slightly lower open.
US and Chinese officials are set to meet in London at a confidential location to try to revive a preliminary trade deal reached in Geneva last month. President Trump has threatened to impose steep tariffs on Chinese goods, while China’s key bargaining chip remains its near-monopoly on rare earth minerals vital to many high-tech industries.
Markets are also monitoring protests in Los Angeles, where National Guard troops are confronting demonstrators opposing Trump’s immigration policies.
The dollar weakened against major currencies on Monday as initial enthusiasm over the strong US employment report gave way to caution ahead of the crucial trade talks.
The rand is gaining against a softer US dollar and the JSE All-Share Index is expected to open flat this morning.
Gold prices fell on Friday amid optimism from the jobs data and trade negotiations but have started to recover this morning.
Oil prices rose on Friday, supported by stronger US economic data and hopes for progress in the US-China trade dispute.
This update is provided by Shaun Murison. Connect with him on LinkedIn here.
Key Indicators: USD/ZAR R17.73/$ | US 10yr 4.49% | Gold $3,321/oz | Platinum $1,219/oz | Brent Crude $64.51 |
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