| Good morning Voornaam, I'm possibly showing my age now, but Thank U is by far my favourite Alanis Morissette song. I've seen a few explanations online for what the song is about, but most seem to point to her spiritual awakenings after a trip to India. She certainly sounds pretty happy with India in the song, especially compared to the rest of her typically angry stuff.
Many emerging markets investors would share her sentiment about India at the moment. At a time when China's growth story isn't enjoying a positive narrative, India keeps popping up as the good news. I see it in commodity companies and we can see it in Sanlam and Santam as well, with the financial services duo reporting great numbers and highlighting the exposure to India as a bright spot.
On a busy day of news, we also saw a trio of property updates: Dipula, Equites and Fortress. Impala Platinum and South32 reminded the market that mining is hard and Metrofile reminded me why I don't hold shares in that company. Blue Label Telecoms reminded me why I didn't choose an IFRS specialisation when I became a chartered accountant. As for Libstar, they came through with solid numbers and reminded me why I like cheese.
That's a lot of reading that you need to do. I spent hours on SENS so that you don't have to. Get all the details in Ghost Bites here>>>
For those who are keen to learn about different techniques in the market - and that's why you're here, right? - the latest episode episode of The Trader's Handbook is perfect. Shaun Murison of IG Markets South Africa joined me to discuss pairs trading and how powerful that strategy can be. With lessons learned from the short on Mr Price that I tried in my demo account, I'm learning every week about how trading differs to investing. You can learn too by following the series and getting those regular insights from my own journey of trying different things. Find it here>>>
To end off what has been a really busy week, the team at DealMakers brings you an analysis of the first half of the year in the South African M&A industry. The lights might have been on for some of that period, but it was still a dark time for sentiment thanks to election jitters. I expect to see far more activity over the next 12 months than we saw in the first half of the year.
In addition to that important interim overview, you can also get the usual weekly summaries of local M&A and local corporate finance, as well as interesting pieces on change of control clauses and dealmaking catalysts in Africa for 2024.
Finally, for something completely different, the latest Magic Markets podcast is a fascinating journey into quantum computing. Global geopolitical analyst Dimitri Zabelin joined us to explain why he thinks this is the next big investment opportunity after AI. You'll find the insights here>>>>
See you on Sunday for Ghost Mail Weekender! |
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| FEATURED: The Trader's Handbook Ep 5 |
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| | | IG Markets Episode 5: Pairs trading offers a great opportunity to play one stock off against another, a strategy that means you can take short positions even in a more bullish market. Learn all about it at this link>>> |
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| FEATURED: Brand new Ghost Wrap |
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| Ghost Wrap: With thanks to Forvis Mazars, this podcast brings you the latest on Italtile, ADvTECH and STADIO as well as Harmony, all in just a few minutes in the Ghost Wrap podcast. |
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| FEATURED: Unlocking the true value of TFSAs for South Africans |
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| | | Satrix: In an article that I could not agree with more, Duma Mxenge talks about the importance of tax-free savings accounts and why they could be rebranded to make it clearer that this should be the cornerstone of an investment journey. Get his views in this excellent article>>> |
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| FEATURED: Is Quantum Computing the Next AI? |
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| Magic Markets: AI has been all the rage in recent times. Coming up just as quickly is quantum computing, an exciting new technology that has some potentially incredible use cases. To lift the lid on this trend and to identify how to invest in it, international geopolitical strategist Dimitri Zabelin joined us. Find it here>>> |
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| Ghost Bites: The latest on Blue Label, Dipula, Equites, Fortress, Impala Platinum, Libstar, Metrofile, Pick n Pay, Sanlam, Santam and South32, along with various Little Bites in Ghost Bites here>>> |
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| Investec Podcast: As part of the Investec No Ordinary Wednesday series, you can enjoy Jeremy Maggs in conversation with Tinus Rautenbach, head of Investec's online platform Clarity, as they discuss the rise of self-directed investing. Find it here>>> |
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| Nico Katzke of Satrix: The GNU has driven significant optimism around the South African market. To help us understand where this is playing out and how the carry trade protects the rand, Nico Katzke joined me on Ghost Stories. Find it here>>> |
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| Magic Markets: How should you go about building a portfolio to meet a specific theme or objective? To explore the topic, Craig Antonie of AnBro joined us to discuss the portfolios that he has build. Find it here>>> |
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| International Business Snippet: |
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| Lululemon has missed expectations for the first time in over two years and has cut its full-year guidance, so that's not great news at all. The share price has tanked 49% this year and I bought into some of that dip - a dip that has sadly kept dipping. When that happens, I wait for the chaos to end so I can try buy in near the bottom and reduce my average in-price. The share price is up over the past month and didn't react negatively to the latest bad news, so perhaps the worst has been priced in now. In fact, it closed 4% higher after-hours! It's worth a more detailed look, I think.
Over at Ulta Beauty, we have another big name that has missed expectations - in this case, for the first time in four years! Unlike at Lululemon where there has already been severe pain, Ulta Beauty investors weren't quite ready for this and the share price fell 7.2% in after-hours trading. This takes the year-to-date decline to 30%.
Volatility means opportunity and we've covered both these stocks before in Magic Markets Premium. Given how interesting these moves are, I suspect that a refresh of both is due in the very near future. Those who are serious about global markets will get immense value from the report library, all of which is accessible for one subscription of just R99/month. |
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| IG Morning Call: daily macroeconomic update |
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| Better than expected US GDP and weekly Unemployment Claims data has helped the Dow Jones close at record highs overnight. The Nasdaq and S&P500 also closed in positive territory, although gains on these indices were less pronounced due to weakness in tech counters led by NVIDIA following the company’s earnings forecast.
European and Asian equity benchmarks have followed suit, moving higher as well, so we expect a positive start for the JSE All-Share Index.
The dollar index has rebounded from oversold territory on the stronger US economic data, as it reduces the likelihood of a 50 basis point rate cut in September. The rand is marginally weaker this morning.
Gold is trading slightly softer in early trade today on the back of a stronger dollar, although is still within eyesight of record highs.
Oil prices are firmer as better economic data out of the US improves demand side assumptions, while disruptions to the supply side are being realised currently from Iraq and Libya.
US PCE Inflation data will be a key focus for traders today.
Key Indicators: USD/ZAR R17.75/$ | US 10yr 3.86% | Gold $2,513/oz | Platinum $946/oz | Brent Crude $79.11
The macroeconomic update is based on IG's morning call update |
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