| Good morning Voornaam, Happy Friday! I hope you have a fantastic weekend lined up with wonderful things to do. Thanks for making time for me in your inbox this morning.
There's a lot of company news for you to get through in Ghost Bites today. Pick n Pay will likely be of interest, with the core Pick n Pay segment continuing to disappoint while Boxer does well. I remain very sceptical of a turnaround there.
I'm also worried about CMH, where the share price appears to be far removed from reality. The market is betting on lower interest rates giving that business a boost. I think it could end in tears over the next 12 months in terms of total returns to investors.
In happier news, PSG's advice-led model is still cooking and Premier's focus on margins has led to a great outcome. BHP is on track for FY25 production numbers and DRDGOLD also has positive momentum. NEPI Rockcastle is raising money to fund its investment pipeline, so that's also good news. On the negative side, Insimbi is having a tough time and Mondi's EBITDA has dipped vs. the preceding quarter.
Like I said - lots to sink your teeth into, along with the director dealings and other Nibbles in Ghost Bites>>>
Every Friday, the team from DealMakers does a great job of giving us summaries of what happened during the week. You can get up to speed on South African M&A, local corporate finance activity and African deals at those links.
There's a new episode of The Trader's Handbook with IG Markets South Africa coming your way next week. Make sure you're up to date by listening to Episode 8 or reading the transcript (both at this link), dealing with the world of index trading and why this approach is popular with traders.
Have a great Friday - and see you on Sunday morning for Ghost Mail Weekender. |
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| FEATURED: The Investec Rand India Accelerator |
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| | | The Investec Rand India Accelerator offers geared exposure to growth in the iShares MSCI India ETF over the 3.6-year term. The ETF tracks the large and midcap Indian market, covering 85% of the India equity universe. Listed on the JSE, it offers 1.5x geared exposure to the ETF capped at 40%, for a maximum return of 60% in Rands. In addition, the Accelerator provides a high degree of capital protection.
To explain the opportunities and risks of this product, Brian McMillan of Investec Structured Products joined me on this podcast. |
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| FEATURED: The Trader's Handbook Ep 8 |
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| | | IG Markets Episode 8: In Episode 8 of The Trader’s Handbook, learn why indices are an attractive option for traders, providing broad market exposure, lower risk compared to single stocks and significant cost advantages. We also discussed practical tips on technical indicators such as RSI and stochastic oscillators. Enjoy it here>>> |
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| FEATURED: Does factor investing work? |
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| Satrix: Factor investing takes ETFs to the next level. Instead of tracking a stock index (like the JSE Top 40), these ETFs have a set of rules based on investment fundamentals like valuation multiples or even levels of debt. The sky is the limit with the creativity that goes into these factors, but do they actually work?
To unpack these types of ETFs and the thinking behind them, Nico Katzke of Satrix joined me for an insightful discussion. Find it here>>> |
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| What does a tyre business know about fine dining? |
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| Dominique Olivier: The Michelin Guide is like the Oscars of the restaurant world. Chefs dream of them, diners flock to them, and some restaurants even wish they could send them back. But how did we end up in a world where a tyre company’s opinion of your dinner is worth so much?. Find
out here>>> |
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| Unlock the Stock: Lesaka Technologies |
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| Unlock the Stock: Watch the recording of the management presentation by the Lesaka Technologies team, along with the vibrant Q&A session on Unlock the Stock. Find it here>>> |
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| Ghost Bites - local company news: |
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| | | Ghost Bites: The latest on BHP, CMH, DRDGOLD, Insimbi, Mondi, NEPI Rockcastle, Pick n Pay, Premier, PSG and numerous Nibbles in Ghost Bites here>>> |
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| Investec podcast: responsible investing |
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| | | Investec Wealth & Investment International has launched a comprehensive guidebook on responsible investing. In the latest episode of the No Ordinary Wednesday, Jeremy Maggs speaks to the authors, Boipelo Rabothata and Maxine Gray. Enjoy it here>>> |
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| International Business Snippet: |
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| Netflix was the focus area for US company earnings in the past day, beating estimates for revenue and earnings. The advertising tier seems to be growing rather quickly, with consumers happy to watch ads if it means they save a few bucks each month. I would personally cut back elsewhere and not suffer through ads in the middle of my shows, but perhaps that's just me.
With 282.7 milion memberships across all pricing tiers and 5.1 million new subscribers this quarter, they clearly know what they are doing at Netflix. We won't have these statistics for much longer, as Netflix plans to stop reporting total subscriber numbers.
Look out for live sport starting to become part of the thesis here, as Netflix builds on what is already an exceptionally strong offering.
Our latest research in Magic Markets Premium is on Stellantis. This is a great example of a stock that we were correctly bearish on, with the automotive group suffering immense competition and the outcome of its own bad decisions. Are things improving yet? You'll find out in the latest report for our subscribers this week. |
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| Magic Markets: GNU follow-through - are businesses changing? |
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| | | Magic Markets: GNU-phoria in South Africa is now a few months old. Loadshedding is becoming a distant memory. Sentiment has clearly turned positive, but is this making a difference in day-to-day business decisions around capital allocation decisions? Dino Zuccollo and Jonti Osher of Westbrooke joined us for this important discussion. Find it here>>> |
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| IG Markets Morning Call: daily macroeconomic update |
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| US and European futures are flat to modestly lower in early trade after etching out further gains yesterday. Asian benchmarks, the Hang Seng and Shanghai Composite are trading notably firmer today after Chinese authorities initiated $112bn in support for the regions stock market.
The stimulus overshadows this morning's GDP data which showed the Chinese economy to have grown at its slowest pace last quarter since early 2023.
The JSE All-Share Index is expected to open up modestly firmer this morning.
The dollar has firmed, most notably against the Euro yesterday after the European Central Bank (ECB) lowered rates by 25 basis points.
The rand is flat on the day.
Metal prices are mostly higher this morning supported by Chinese stimulus efforts.
Oil prices are tracking sideways this morning.
Key Indicators: USD/ZAR R17.60/$ | US 10yr 4.09% | Gold $2,709/oz | Platinum $1,005/oz | Brent Crude $74.47
The macroeconomic update is based on the morning call update by IG Markets |
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