| Good morning Voornaam, Although the talk of the town yesterday was the delisting offer to African Rainbow Capital shareholders, I think there's more to learn from the Super Group numbers. Goodness knows there were plenty of other announcements as well.
So, I'll start with Super Group. Sadly, the underlying business exposures are looking really tough at the moment. If ever you wanted to see why it is so important that Europe gets back to economic growth, just take a look at Super Group's numbers in that region. The automotive sector is far too important to Europe and is being decimated by the Chinese. Once you add in the risks Super Group faces in its South African supply chain business, it really is looking tricky for them. They need a much better second half to the financial year.
Fine, I'll do African Rainbow Capital now. It's pretty simple, really. The offer is at a premium to the recent market price and a discount to the underlying net asset value (NAV). I am therefore pretty sure that appraisal rights are going to be a factor here, in which activist shareholders fight to get paid out a number closer to the NAV. Personally, I just think it's a pity that local investors won't get any further access to the Tyme growth story if this goes ahead. Well, not for now at least - perhaps that asset will come to market in a few years from now once the venture capitalists have made the real money?
In other financial news, Bytes Technology Group flagged some pretty strong numbers. Resilient is living up to its name in the property sector. Also in that sector, Schroder European Real Estate is another data point that reflects the struggles in Europe. Old Mutual has been a pretty uninspiring story and for the life of me I cannot understand why they are now trying to build a bank that will only break even in 2028. Master Drilling's HEPS went up and so did Remgro's, although NAV is what we are really interested in at Remgro. Finally, Libstar released full details of its problematic performance.
Get my analysis on all these updates (plus the Nibbles) in Ghost Bites at this link>>>
Interested in art? Of course you are! The latest Magic Markets episode is all about the art of investing in art, a topic we explored with the help of Tristanne Farell at Investec. Enjoy this fun and insightful discussion here>>>
Dominique Olivier's latest piece is proving to be popular, as always. Remember the hole in the ozone layer? Ever wondered why you simply don't hear about it anymore? No news really is good news in this case, with this piece looking back on how the world came together to solve this problem. Treat as some inspiration to get your week off to the right start!
In case you missed it, make sure you've checked out the recent episode of No Ordinary Wednesday. Hosted by Jeremy Maggs and part of the excellent Investec Focus Radio stable, this episode focuses on whether China is Trump-proof. Find it here>>>
Have a great day - and remember to sign up for Unlock the Stock with Fortress Real Estate this Thursday 20th March at 12pm. As always, attendance is free. You just need to register here>>> |
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| SATRIX: Don't waste the TFSA opportunity |
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| | | Tax-free savings accounts (TFSA) are one of the most building blocks in any equity portfolio. The advantage of compounding tax-free returns over a long period is incredibly powerful and can really turbocharge a long-term wealth creation journey.
To discuss the importance of TFSA investments and the opportunities available to investors in the ETF universe, familiar voice Siyabulela Nomoyi of Satrix returned to the Ghost Stories podcast.
Enjoy it here>>> |
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| GHOST WRAP: Retailers on sale on the JSE - a review of the first few weeks of 2025 |
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| 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>>> |
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| GHOST BITES - Making sense of SENS on the local market |
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| | | African Rainbow Capital has pulled the delisting trigger. Super Group is in a tight spot. Look out for numbers from Bytes, Libstar, Master Drilling, Old Mutual, Remgro, Resilient and Schroder as well. Get the details in Ghost Bites>>> |
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| Unlock the Stock - Afrimat |
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| In the 48th edition of Unlock the Stock, popular JSE mid-cap Afrimat returned to the platform for a management presentation and interactive Q&A with attendees of the webinar. The recording is available at this link>>> |
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| DOMINIQUE OLIVIER - Ozone: how a hole taught humanity to collaborate |
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| | | In a world of polarised viewpoints and much shouting, Dominique Olivier took the opportunity this week to write about something rare: a moment when the world didn’t just come together, but actually got it right. A global effort so successful, so decisive, that it stands as one of the greatest acts of collaboration in human history. There's a reason why you never heard about the hole in the ozone layer anymore. Read it here>>> |
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| INVESTEC PODCAST: Is China Trump-proof? |
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| | | Tariffs may have a diminished impact on China, as the country has strategically restructured its supply chains to lessen its reliance on the US. This is according to Campbell Parry, global resources analyst at Investec Wealth and Investment International, on the latest episode of No Ordinary Wednesday available here>>> |
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| International Business Snippet: |
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| As a departure from the much more interesting news that we saw in the automotive sector in recent days, the tech sector delivered us numbers from DocuSign that gave the share price quite a boost on the day of release. Of course, it doesn't take long for artificial intelligence to get a mention in the announcement!
The share price performance over the pandemic has been incredible - as in incredibly disappointing, that is. You would think that in this cloud-focused world we find ourselves in, electronic signatures would've been lucrative. Alas, the share price is up just 7% over 5 years. Remember, a 5 year chart now has the COVID lows as its starting point, so that really is poor.
The world is changing, fast. This is why we covered BAE Systems in Magic Markets Premium recently, as understanding elements of this defence theme is well worth your time. The company finds itself in an interesting position, with strong links into the US, European and allied military budgets. It's a better business than many of the continental Europe names, as reflected in the valuation. Our subscribers can enjoy our detailed work on this growth stock. |
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| Magic Markets: Buying gold on the blockchain |
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| | | Magic Markets: If there’s one thing the markets taught us recently, it’s that gold remains as relevant as ever. Mesh Trade brings you a new way to invest in this store of value, giving you a perfect example of tradition combined with tech.
For a limited time, Mesh investors can buy Krugerrands at the best retail price in the market and on a fractional basis using blockchain technology. Mesh also offers a wide range of tokenised financial assets, giving investors a multi-asset solution on a single platform.
To learn more, listen to this podcast>>> |
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| US stock indices tumbled yesterday, with the tech-heavy Nasdaq falling 1.7%, dragged down by losses in large technology companies. The Federal Reserve is widely expected to hold interest rates steady at today's policy meeting conclusion. Major US index futures are flat in early trade this morning.
European equities edged higher, with German stocks approaching record highs after parliament approved a significant debt reform package aimed at boosting Europe's largest economy. The legislative action strengthening the euro against the dollar.
Hong Kong's market reached a three-year high, with the Hang Seng Tech Index gaining 2.8% yesterday and continuing upward today. Technology shares led the advance, with Baidu surging nearly 10% following its new AI model launch. Investor enthusiasm remains strong after recent stimulus measures and positive economic data.
The JSE All-Share Index looks set for a flat to modestly positive start to the day after pushing higher yesterday. The rand remains firm against a softer greenback, although has moved off its best levels of the year realised just yesterday.
The dollar weakened broadly while the euro gained following Germany's debt restructuring. US Treasury yields declined alongside the dollar index.
Gold prices hit record highs, benefiting from the softer dollar, geopolitical tensions, and trade uncertainties. Meanwhile, crude oil prices decreased after Russia-Ukraine peace talks offset Middle East instability concerns.
Middle East tensions increased after Israeli missile strikes in Gaza killed over 400 people.
Russia-Ukraine tensions eased somewhat after Putin agreed to Trump's proposal for a 30-day pause in targeting Ukrainian energy infrastructure.
Key Indicators: USD/ZAR R18.18/$ | US 10yr 4.29% | Gold $3,041/oz | Platinum $1,016/oz | Brent Crude $70.18
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. |
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