MTN Nigeria: bad to worse

Good morning Voornaam,

Articles:

Ghost Bites: MTN is really struggling in Nigeria and things need to change. Harmony stands out as the good news story among mining updates that also came in from Glencore and Impala. Renergen released numbers, as did Capital & Regional. WeBuyCars released a trading statement. Read Ghost Bites, with thanks to Fedgroup.

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​Dominique Olivier: The case for secondhand luxury business models - especially for younger consumers. Read it here>>>

Satrix: The MSCI ACWI helps investors capture global equity opportunities, with around 60% of exposure in the US. Read it here>>>

​Fedgroup: A tax-free savings account strategy is critical in any wealth creation journey. Fedgroup reinforces this concept strongly in this article>>>

Podcasts:

Ghost Wrap: the news and my views on Sirius Real Estate, Afrimat, Oceana and PSG Financial Services, delivered in five minutes and with thanks to Mazars. Listen to it here>>>

​Magic Markets: Strategic trends and recent performance at Goldman Sachs and United Health Group, brought to you by Future Forex. Listen to it here>>>

Investec Structured Products: The Global Accelerator offers 100% capital protection in dollars at maturity after five years, while giving exposure to global equity indices. Japie Lubbe joined me in this podcast>>>

Investec podcast The Current: ​Interested in investment opportunities stemming from South Africa's energy transition? Listen to Iman Rappetti in conversation with Barry Shamley, Zane Bezuidenhout, Boipelo Rabothata and Campbell Perry in Episode 4 of The Current at this link>>>

Local company news:

Ghost Bites is brought to you by Fedgroup.
MTN released some pretty horrible numbers in Nigeria. Equity is now negative and they will need to make changes to the business to reverse the trend, including things like capex spend and the extent of dollar-denominated debt. Even EBITDA is under significant pressure, so it's not just a balance sheet problem.
There's a flurry of mining updates, with quarterly news coming in from the various mining houses. Harmony stands out at the moment, delivering exceptional production numbers at a time when gold prices are elevated. The PGM sector sits at the other end of the happiness spectrum right now, as evidenced by retrenchments and like-for-like production performance at Impala Platinum. I also covered Glencore this morning, with a few other mining houses in Little Bites as well.
On the energy side, Renergen also released numbers. Although investors know that they need to be patient with this one, it would be good to see positive momentum on the income statement.
In property news, Capital & Regional achieved solid growth - especially in hard currency. The dividend is higher and management sounds optimistic about the UK portfolio.
Finally, WeBuyCars released a trading statement. Core HEPS looks great, although the market is very much expecting to see growth rates like these.
Get the details in Ghost Bites at this link>>>
In case you missed it, don't forget to watch Bell Equipment on Unlock the Stock. With the dividend gone for now, the focus was on how the company will allocate capital and grow going forward. You can watch it here>>>

READ AND LISTEN: The Global Accelerator

READ: Satrix MSCI ACWI - Capturing Opportunities

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LISTEN: Ghost Wrap
(Sirius Real Estate | Afrimat | Oceana | PSG Financial Services)

International business news:

At some point, inflation and interest rates had to bite. Quick-service restaurant (QSR) groups have been having a lovely time of things in the post-pandemic era, but something had to give. It seems to have now given.
Starbucks closed 16% lower yesterday after releasing disappointing numbers. Even Yum! Brands wasn't safe, with plenty of competition in key categories like chicken. Yum! saw a drop in same-store sales of 3% for the quarter, with only Taco Bell in the green on that metric. Even McDonald's is up against it, with management talking about a "street-fighting mentality" as a requirement to win.
Hungry for more on global stocks? The latest free Magic Markets podcast covers Goldman Sachs and United Health Group - both of which would've doubled your money in the past five years, in dollars! Get the latest on them here>>>
Ready to understand more about risks and opportunities in global stocks? Subscribe to Magic Markets Premium for just R99/month. You'll get a subscribers-only weekly report and podcast on global stocks, covering strategy, financials and technical trading indicators.

READ: Luxe for less - the case for secondhand luxury
(by Dominique Olivier)

Macroeconomic Update

The Fed remains cautious about inflation, holding interest rates steady. The dollar weakened in response to comments from Fed Chair Jerome Powell that minimised the likelihood of an upcoming rate hike. Attention now shifts to today's jobless claims and upcoming payroll figures.
Gold recovered after a significant drop on Tuesday, influenced by the stronger dollar.
Key indicators: USD/ZAR R18.57; US 10-year 4.62%; Gold $2,317; Platinum ZAR R17,770; Brent Crude $83.98
This macroeconomic update is based on TreasuryONE's morning update.