| Good morning Voornaam, Quick links: Sun International saw records fall at SunBet and Sun City, with the group dividend 6.7% higher. On a very busy day, we saw news from Brait, Bytes, Discovery, JSE, MC Mining, Merafe, OUTsurance, Sibanye-Stillwater, STADIO and Thungela as well. It's all in Ghost Bites, brought to you by Fedgroup. Fedgroup is going front-foot on tax free savings account information this year and I love that approach, as a TFSA should be part of your plan every year. It shouldn't be a last-minute panic in February! Find out how Fedgroup thinks about TFSA strategies in this article>>> Investec has launched the Investec Nikkei 225 Autocall, a structured product that references the Japanese market. You can get all the details in this Ghost Stories podcast with Brian McMillan. For those who prefer to read, there's also a brand new article on this product available here. Westbrooke achieved a record year in 2023, showing why private debt is becoming an increasingly popular asset class for investors seeking higher yields. To understand why equities tend to underperform when rates are high and whether bonds make up for it, read this insightful article>>> The creative rut at Disney continues and there's little sign of things improving. Dominique Olivier loves the movies, so she couldn't help but contrast Disney and Studio Ghibli as a perfect example of quantity vs. quality. Read this great piece here>>> There's a brand new episode of the Ghost Wrap podcast thanks to Mazars, which means you need just a few minutes to get the latest on Mustek, Curro, Sea Harvest and Quilter - available here. A brand new episode of the Magic Markets podcast gives you the latest on Saudi Aramco and Broadcom. |
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| LISTEN AND READ: The Investec Nikkei 225 Autocall
with Brian McMillan of Investec |
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| Brian McMillan of Structured Products at Investec talked to me about the Investec Nikkei 225 Autocall.
It offers exposure to the Nikkei 225 index over a period of up to five years with an enhanced return of up to 17% per annum in ZAR or 11.5% per annum in USD. Importantly, there is 100% capital protection provided the index does not drop by more than 30%.
Listen to this podcast to find out more. Alternatively, you can read this article about the product. |
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| READ: A record year for private debt
(by Westbrooke) |
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| Westbrooke achieved a record year in 2023 in Westbrooke Yield Plus. Private debt is becoming an increasingly popular asset class for investors seeking higher yields.
In this article, you can learn why equities tend to underperform in a high rates environment and whether bonds make up for it. You can also learn about the portfolio of private debt exposure at Westbrooke. |
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| READ: Disney goed nie
(by Dominique Olivier) |
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| The creative rut at Disney continues and shows no sign of improving.
As a perfect example of the trouble with quantity over quality, Dominique Olivier contrasts the recent Disney films against the approach taken by Studio Ghibli with The Boy and the Heron. |
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Local company news:
Ghost Bites is brought to you by Fedgroup.
Sun International has a good story to tell in the SunBet and Sun City operations. Load shedding caused pain elsewhere though. The happy news is that the lights have been on a lot more this year, so hopefully people are out there having fun and Sun International is getting a slice of that action. With the Peermont deal going through regulatory approvals, there will be a lot of focus on both performance and the balance sheet going forward.
The new accounting standard is making life difficult in the insurance space. You have to read the results very carefully. Discovery and OUTsurance are today's examples, with a trading statement from the former and detailed results from the latter.
For those who don't know, the JSE also happens to be a listed company. In fact, it is listed on the group's own product, being the Johannesburg Stock Exchange! There's more to the group than just revenue related to trading, which is just as well given recent trends. Be careful when interpreting the latest numbers though, as the interest rate trend gave them a major boost.
STADIO has confirmed that the Durbanville campus construction should start this year. The group has achieved solid earnings growth and the dividend has moved higher as well. The challenge is that the Price/Earnings multiple remains high, so the market is fully expecting ongoing growth.
You can also get the latest from Brait, Bytes, MC Mining, Merafe, Sibanye-Stillwater and Thungela. Along with the other stories, all of this is available in Ghost Bites at this link>>>
Check out the most recent episode of the Ghost Wrap podcast, made possible by Mazars. It takes just a few minutes to get the latest on Mustek, Curro, Sea Harvest and Quilter. Get it here>>>
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| READ: Private credit - the bold "bank heist"
(by Harris Gorre, Grovepoint Investment Management LLP) |
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| The US market has seen substantial growth in the private credit market. But what is the right approach to investing in this space?
Harris Gorre of Grovepoint Investment Management walks you through his strategy in this article. |
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| READ: Artificial Intelligence - fad or future, and how best to invest
(by Nico Katzke of Satrix) |
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| | | Nico Katzke of Satrix asks the real questions when it comes to AI, including the ones that few seem to be asking about its sustainability.
Get his views here. |
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| LISTEN: Magic Markets podcast |
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| In Episode 166 of Magic Markets, we latched onto the concept of whether chips are the new oil. How better to do this than by covering chips and oil?
It's not as tasty as covering chips in oil, but we still enjoyed ourselves. I covered Saudi Aramco (a name you'll know from Formula One) and Mohammed Nalla dealt with Broadcom as one of the lesser-known names in the tech and semiconductor space.
Magic Markets is a great way to expand your reach to global opportunities. Listen to the show here.
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| Currencies, commodities and rates: TreasuryONE Market Update The Bank of Japan ended its extensive monetary stimulus, with the first interest rate hike since 2007. This is a move to a policy rate range of 0% - 0.1% vs. -0.1%, signalling an end to negative rates. The yen depreciated against the dollar despite this move. The Bank of Japan is diverging further from other central banks, as elsewhere in the world the narrative is all about cuts and the timing thereof.
The Australian dollar lost ground as the RBA kept rates on hold, with a less hawkish outlook.
Emerging market currencies are generally down this morning, with the rand just below the R19.00 level.
Gold is in a narrow range ahead of the FOMC meeting tomorrow, with traders wary of a less dovish Fed. Base metals have been impacted by the risk-off sentiment and PGMs are lower.
Key indicators: USD/ZAR R18.97; US 10-year 4.31%; Gold $2,159; Platinum ZAR R17,289; Brent Crude $86.73 |
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| LISTEN: The ETF product design process
with Siyabulela Nomoyi of Satrix |
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| | | Delving into the ETF product design process and with a discussion on the latest ETF product launches at Satrix, Siyabulela Nomoyi joined me for this insightful conversation.
Don't miss it! |
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International company news:
Home Depot featured here yesterday with the news that the company is investing heavily in the "Pro" side of the business this year. I therefore found it interesting to note the news of homebuilder sentiment improving in the US. This seems like useful timing for the company.
One has to be careful with sentiment indicators, but they can be rather useful. Builders in the US are singing a happier tune about demand from buyers, particularly in the Midwest and West in the US. The number of builders cutting home prices to attract buyers has also decreased.
If mortgate rates do start to fall, this should inject further energy into this space.
If you want to learn about global companies, then Magic Markets Premium is the perfect way to do it. For just R99/month, you get access to the entire research library that includes a new research report every week on a global stock. There's no minimum monthly commitment, either. Subscribe here and start learning>>> |
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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.
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