Nedbank finishes 2023 strong

Good morning Voornaam,

Quick links:

Nedbank was a nice surprise yesterday, with a strong finish to 2023 and a juicy jump in the final dividend. Perhaps the biggest news of the day was Shoprite, which continues to shoot the lights out. Curro, Sibanye-Stillwater and WBHO also released results, while Premier gave a useful update. At MultiChoice, the offer price from Canal+ has gone up! Get it all in Ghost Bites, brought to you by Fedgroup.

​Nedbank wants to make sure you fully understand the latest full year financial results at the company, so they've placed the results in Ghost Mail for your convenience. Find them here>>>

Nico Katzke of Satrix weighs in on the AI debate and asks some pertinent questions about whether this is a fad or the future - and how best to invest in it. Read the piece here>>>​

Dominique Olivier tells us the story of creatives fighting back against AI - literally! In this rage against the machine, artists are fighting for their intellectual property rights in extraordinarily interesting ways. Read about it here>>>

A brand new episode of the Magic Markets podcast gives you the latest on Cashbuild, Italtile and Home Depot, made possible by B2IT.

Made possible by Mazars, the latest episode of the Ghost Wrap podcast brings you the latest on NEPI Rockcastle, Vukile, Italtile, Bidcorp, Spar and Pick n Pay - available here

LISTEN: The ETF product design process
with Siyabulela Nomoyi of Satrix

READ: Rage against the machine: creatives vs. AI
(by Dominique Olivier)

Local company news:

Ghost Bites is brought to you by Fedgroup.
Nedbank finished 2023 strong - especially when it came to impairments and thus the credit loss ratio. We always knew that revenue would look good in this environment, but I didn't expect much of an improvement in the credit loss ratio from the half-year number. The bank has placed its results in Ghost Mail at this link and of course I comment on them as well in Ghost Bites.
Shoprite put out another fantastic set of numbers, with the caveat being that load shedding costs are really hurting shareholders. When Shoprite can only grow HEPS by 7.3% despite an exceptional top-line performance, it's not hard to see why Pick n Pay is in such dire straits.
Speaking of pressure, Curro certainly isn't doing any favours for middle class South Africa. With tuition fees up 12%, it's hard to reconcile the pricing decision with the stated strategy of filling capacity. The short-term impact on financial performance is excellent of course, but will there be any long-term impacts as parents get squeezed like this?
Sibanye-Stillwater also released numbers, showing that gold is actually just far too small in the group to make up for what has happened in PGMs. In fact, once you deduct the losses in nickel, the non-PGM side of Sibanye is a bit of a rounding error. This means that Sibanye really needs PGM prices to go up, with the negative shift in sentiment towards electric vehicles perhaps on its way to help.
Also look out for a higher offer from Canal+ to shareholders of MultiChoice, as well as a dividend from WBHO! Premier also gave an update on recent trading conditions.
There's only one way to get everything you need in one click. Join me in Ghost Bites>>>
There's a brand new episode of the Ghost Wrap podcast for you to enjoy, made possible by Mazars. In the time it takes to drink your coffee, you can get the latest on NEPI Rockcastle, Vukile, Italtile, Bidcorp, Spar and Pick n Pay. Get it here>>>

READ: Artificial Intelligence - fad or future, and how best to invest
(by Nico Katzke of Satrix)

LISTEN: Magic Markets podcast

Currencies, commodities and rates: TreasuryONE Market Update

There's a new all time high for gold, with the yellow stuff reaching $2,141 yesterday. Finally, the safe haven status is coming through strongly. Weaker-than-expected US data (like the US Services PMI) also helps, as it implies rate cuts.
The rand is trading stronger in the lower R18.90s, with the market ignoring the local GDP print that missed expectations.
Looking ahead, the market will pay attention to the non-farm payroll data coming out on Friday.
Remeber, the TreasuryONE YouTube channel is a wealth of knowledge and insights into the market. Find it here>>>
Key indicators: USD/ZAR R18.96; US 10-year 4.15%; Gold $2,126; Platinum ZAR R16,799; Brent Crude $82.21

READ: Stability doesn't always have to come at a cost
with Fedgroup

International company news:
Ford's sales were up 10.5% in February, including an 81% jump in EV sales off a small base and a 32% increase in hybrid sales, with a small base also playing a role there. Internal combustion engine sales were up 7.5%. A whopping 89.5% of Ford's sales in February were of traditional cars and trucks (what we would call bakkies), so the penetration rate of electrified vehicle sales is way below the likes of Toyota, which has focused on hybrids.
In a good lesson around how valuations are all about expectations, Target closed 12% higher despite comparable sales declining for the third quarter in a row. Even though the numbers look poor in isolation, the point is that they beat Wall Street estimates.
This is dwarfed by Crowdstrike, which jumped 21% in after-hours trading after beating estimates and issuing stronger guidance for the rest of the year. Revenue was up 36% year-on-year and net income swung into the green.
If you're reading this section every day, it's because you want to cast your eyes farther afield for opportunities. Magic Markets Premium is your key to understanding global stock opportunities, with new stock research every week and a subscription price designed for South Africans.
For just R99/month, you get access to the entire library of around 120 research reports and podcasts. Expand your investment horizons by subscribing here.

READ: Satrix launches Satrix JSE Global Equity ETF