| Thursday 13 January 2022 Good morning Voornaam,
It was a slow day on SENS yesterday. The news may have been cold but the market was red hot.
Naspers is finally on the move again, with a monster rally of 9.3% yesterday. To be fair, it's only back to where it was in November. The share price has been volatile for months which is a trader's dream, especially given the exceptional liquidity available. The rally was driven by a strong day for Chinese counters like Alibaba, up 5.9% on the day. That is still a very painful trade for me from 2021 and I will need many such rallies to get back to breakeven.
Resources also had a fantastic day, spearheaded by Sasol at 6.9% and tin mining company Alphamin with a 6% rally. I wrote on Alphamin's record production quarter in yesterday's InceConnect and you can read that article here. There were also big moves from BHP, Anglo, Royal Bafokeng Platinum, Kumba and African Rainbow Minerals, with the Resource 10 index closing 4.5% higher.
There was big news out of Capitec yesterday as co-founder and CFO Andre du Plessis will retire on 30 June 2022. He has given 22 years of service to the group and I have no doubt that his retirement nest egg reflects the growth story of Capitec. Next in line to the financial throne at Capitec is Grant Hardy, Group Services Financial Head at Capitec Bank. He has been with Capitec since 2015. Internal appointments are generally a great sign at corporates, indicating depth of talent and continuity of knowledge.
Nampak has declared the dividends on its cumulative preference shares. In order to do this, the directors need to be satisfied as to the solvency and liquidity of the group. After a stunning turnaround reflected in share price growth of 70% in the past six months, the group is in a much stronger financial position than before.
Transaction Capital has been one of the stars of my portfolio and has had a beautiful run, doubling in value over the past year. You don't have to look too hard in the market before finding someone who thinks the share looks expensive. Director dealings are notable in such situations, especially when the amount is R48.7 million! An entity associated with independent non-executive chairman Chris Seabrooke has disposed of that chunky value in shares.
Today's feature article is on an operational, trading and financial update from EPP, the property fund that Redefine is in the process of trying to acquire. It gives many interesting details on the macroeconomic environment in Poland. The challenge faced by the fund is that its balance sheet has too much debt and th ere are major repayments looming. Read all about it here.
Magic Markets is back this week. Be sure to check out the website to get your podcast fix and to catch up on any shows you may have missed.
Good luck in the markets today,
The Finance Ghost |
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