Paper and packaging reporting bonanza

Friday 06 August 2021

Good morning Voornaam,

Many of you probably Googled a few new names last night, as President Ramaphosa reshuffled the cabinet. The big news was that Tito Mboweni is on his way out, so it will be interesting to see how the currency reacts.
At the rate our mining houses continue to print money though, there's huge support for the Rand from our exports. Sibanye-Stillwater released a trading update yesterday that HEPS will be up by at least 138% vs. the six months to June 2020. The share price promptly fell nearly 4%, because investors have decided that they hate dividends and would rather buy other companies.
Jokes aside, there's some head-scratching in the market around these dips in resource stocks. Royal Bafokeng Platinum is another oddball that is dropping despite trading on a P/E of around 3x.
The sector that dominated SENS yesterday was paper and packaging, with updates from Mondi, Mpact and Sappi. Mpact has shot the lights out this year and is a dependable South African mid-cap that chugs along despite all the challenges in this country. I've written about all three in a single article to get you up to speed on the sector. It's a long but worthwhile read.
Other important trading statements included Trellidor (HEPS up 154% for the year to June 2021) and Woolworths (HEPS up between 205% and 215% for the year to June 2021). Trellidor closed 6% higher and Woolworths closed 5.3% higher on a day that was notable for significant positive moves in several companies.
Another one to keep an eye on is Argent Industrial which is now trading under a cautionary announcement, as the company is currently negotiating for the acquisition of a business. No further details are available at this point.
It should be an interesting day in the markets today as people react to the cabinet reshuffle. Also keep an eye out for non-farm payroll data out of the US, which will feature in the ongoing debates around the likelihood of hawkish behaviour from the Fed.
Finally, the usual Friday DealMakers content is included for your reading pleasure. These articles are a great way to make sure you didn't miss any important corporate activity this week.
Good luck out there!
The Finance Ghost

Local and Offshore Market News

Disclaimer
Our content is intended to be used and must be used for informational purposes only. You must do your own analysis before executing any investments or strategic decisions, based on your own circumstances. We do not provide personalised recommendations or views as to whether an investment approach or corporate strategy is suited to the needs of a specific individual or entity. You should take independent financial advice from a suitably qualified individual who gives due regard to your personal circumstances.
Whilst every care is taken, we accept no responsibility or liability for any errors or omissions in any of our content.
The views, thoughts and opinions expressed in our content belong solely to the author or quoted individuals and/or entities, and not necessarily to the author's employer, organisation, committee or other group or individual, or any of our affiliates or brand partners.