| Good morning Voornaam, There was only one major story yesterday and it's a big one: Reinet has sold its entire stake in British American Tobacco! This is the power of the markets: a company can turn shares into a vast amount of cash in literally the space of a couple of hours.
Reinet now has quite the investment warchest, but what will they do with it? For me at least, the exit from British American Tobacco makes Reinet a lot more interesting, so I'm looking forward to seeing what happens here.
Along with the Nibbles, get insights into this deal in Ghost Bites>>>
People seem to be enjoying the latest piece from Nico Katzke at Satrix and I'm not surprised at all. He's written on whether higher risk always means higher reward in the market. Spoiler alert: there's a lot to be said for lower volatility equity investments. Learn from the best in this great article>>>
In case you haven't gotten to it yet, the first Magic Markets episode for the year includes a discussion on the market trends coming into 2025, as well as a sobering discussion on the JSE's performance in 2024 in the context of global markets. There's also some fascinating stuff in there about China and how the geopolitical landscape is playing out. The podcast and transcript are available here>>>
And remember, for the qualifying entrepreneurs among you, MIC Khulisani Ventures is looking to provide capital to businesses that are ready to aggressively grow. Applications need to be in by the end of January, with capital expected to flow by March. To fully understand the opportunity, be sure to listen to this podcast>>>
Have a great day! |
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| SATRIX: Low-risk high-reward - the low-volatility anomaly |
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| | | Does taking higher risk always lead to higher returns? Or is there something to be said for seeking out lower volatility equity exposure, especially if it can generate similar overall returns?
Nico Katzke of Satrix digs into the numbers to bring you this insightful piece on portfolio and risk strategy.
Enjoy it here>>> |
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| Ghost Wrap - five insights from December |
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| Ghost Wrap: There were some great stories in December that are well worth keeping in mind in January. Italtile's share price needs a careful watch. Prosus is making major acquisitions again. Renergen is still dealing with teething issues - and a legal dispute as well. Metair is getting very little out of its Turkish business. Finally, will Bell Equipment shareholders kick themselves? I cover these topics in Ghost Wrap, brought to you by Forvis Mazars and available here>>> |
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| GHOST BITES - Making sense of SENS on the local market |
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| | | Reinet has sold its entire stake in British American Tobacco, leaving the company with a substantial warchest for further acquisitions. But what will they do next? Get the details in Ghost Bites. |
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| DOMINIQUE OLIVIER - DeLorean: Who's driving this thing? |
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| Gullwing doors, fairy curses, cocaine busts and sneaky accounts in Panama. As it turns out, being the world’s most recognisable time machine isn’t even the most interesting part of the DeLorean story. Buckle up, dear reader, because Dominique Olivier is taking a little drive down memory lane – and where we’re going, we don’t need roads. |
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| Unlock the Stock - KAL Group |
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| | | Unlock the Stock: KAL Group joined the platform for the first time to talk about the performance and strategic focus areas in the broader agriculture industry. Enjoy the presentation and Q&A here>>> |
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| MAGAnomics: Trump and the global economy |
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| International Business Snippet: |
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| Get ready: the US banks are due to report earnings today! That's always important as there's a substantial read-through for the rest of the market. Investors put lot of faith in comments made by the likes of Jamie Dimon, CEO of JP Morgan.
The banks tell us a lot about Wall Street, but also about Main Street (as the saying goes). Investors will look for insights into not just the level of corporate activity and where that is happening (e.g. equity raises vs. debt restructurings), but also the demand for credit among consumers.
Today, numbers will come through from JP Morgan, Goldman Sachs, Wells Fargo and Citigroup. Bank of America and Morgan Stanley are expected to release numbers tomorrow. Buckle up!
Magic Markets Premium got 2025 going with Nike, as we are now the closest we've been to taking a long position in the company. Under new CEO Elliott Hill, Nike looks set to get back to its core DNA. There's vast competition in this market, so will that be enough? And is the valuation really cheap enough yet? Subscribers find out this week. |
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| Magic Markets: The year ahead - buckle up! |
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| | | Magic Markets: To kick off the year, we couldn’t resist talking about the major themes that have carried over from 2024 into a new calendar year. US – China relations, interest rates, frothiness in equity valuations – it’s all in here, along with a sobering discussion that gives context to the JSE performance last year vs. global alternatives. Find out more here>>> |
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| US stock indices are trading in a mixed fashion overnight, as are European index futures and Asian equity benchmarks this morning. The uncertain market direction pre-empts today’s all important US CPI inflation data out this afternoon and is suggestive of a flat open today for the JSE All-Share index.
Despite some softening of the US dollar yesterday, yields are trading at 15 month highs this morning.
Oil prices have started to temper recent gains, as markets digest the potential impact of further US sanctions on Russia and yesterday’s EIA report that supply will outpace demand for the commodity over the next two years.
Gold is slightly higher in early trade, although movements today are marginal.
Key Indicators: USD/ZAR R18.92/$ | US 10yr 4.77% | Gold $2,679/oz | Platinum $939/oz | Brent Crude $79.65
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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