| Good morning Voornaam, I really hope you enjoyed the rugby, especially if you're lucky enough to have a working DStv stream. I appear to pay a lot of money every month to watch a stream that is so pixelated that it reminded me of Minecraft. I'm starting to think that one of the public interest arguments at the Competition Commission could be that a Canal+ deal will allow people to reliably watch the Springboks!
Moving swiftly along, the dust has now settled on the recent flurry of big tech earnings in the US and this gave us an opportunity to give them a high-level review in Magic Markets. Of course, we also spoke about our positioning in each stock. Find it here>>>
For a podcast with a trading instead of investing flavour, you can enjoy the brand new episode of The Trader's Handbook, my podcast collaboration with the team at IG Markets South Africa. In episode 10, we cover commodities - yes, trading the likes of gold and oil. You can learn all about why this is appealing and how it differs to trading the underlying producers of these commodities. We also covered the technical pattern of double tops and double bottoms. Enjoy it here>>>
The Foschini Group kicks off our company news today, with a set of numbers that don't look favourable at all. The offshore business has no real excuse, with the local business at least pointing to the base effect of clearance sales last year as an explanation for the revenue trajectory. As for the silver linings that helped the share price rally anyway, you'll find a higher dividend and a much-improved final few weeks of trading in the period.
Richemont continues to struggle with demand in Asia Pacific, with the drop in that region offsetting literally all the growth everywhere else. If we end up in a scenario with tariff wars and a further deterioration in East-West relations with Trump in the hot seat, that probably doesn't bode well for demand for luxury goods in China. I would tread carefully here.
At Sephaku, the narrative is one of a subdued construction environment, yet the group reported a massive jump in profits. You have to read carefully to avoid making the mistake of extrapolating this growth.
Other news includes Grindrod's Mozambican operations coming back online after a very short suspension, Huge Group releasing an uptick in NAV that the market is probably going to ignore and ISA Holdings releasing better profits despite sales dropping.
For details on these stories and the other Nibbles, read Ghost Bites here>>>
Other goodies for you today? Well, if you're interested in Calgro M3, you'll enjoy their latest appearance on Unlock the Stock. The dynamic duo in the management team also spoke about why they are moving on from the group after so many years and what the future holds for Calgro M3, so don't miss it.
Finally, Dominique Olivier's latest column is an excellent look at whether we are really living longer. Is this just a convenient selling tactic for retirement product houses, or are we going to live past 100? Dominique separates fact from fiction in this piece>>>
Have a great day! |
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| THE TRADER'S HANDBOOK: Insights and strategies for commodity markets - oil, gold and more |
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| | | In this episode of The Trader’s Handbook, Shaun Murison from IG Markets South Africa joined me to explore the world of commodity trading.
We discussed the nuances of trading popular commodities like gold and oil, comparing direct commodity trading to investing in mining stocks, and delved into the unique appeal and risks associated with each.
We also covered double tops and double bottoms in the technical analysis section.
The podcast and detailed transcript are available here>>> |
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| FORVIS MAZARS: Innovative funding remains the charge powering South Africa's energy transition |
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| | | The ongoing evolution of the renewable energy investment landscape in South Africa requires innovative funding structures, as explained by Johan Marais and Taona Kokera of Forvis Mazars in South Africa. Learn more here>>> |
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| INVESTEC: India a gateway to outsized emerging market opportunities |
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| As the global economy shifts from a high inflation and high interest rate environment into the next interest rate cutting cycle, global investors are casting their net wider in their search for returns. India is an attractive opportunity. Investec explains why in this article>>> |
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| SATRIX: Shari'ah-compliant Investing |
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| | | Shari'ah-compliant investing in South Africa just got a major boost with the listing of the Satrix MSCI World Islamic ETF on the JSE in October.
Yusuf Wadee of Satrix joins me to unpack this fund and the fascinating Shari'ah principles in general. There's much to learn here, regardless of whether your faith requires you to invest based on these principles.
Along with a detailed transcript, you'll find it here>>>
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| DOMINIQUE OLIVIER: We're living longer... I think |
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| | | Are we actually going to live past 100, or are retirement product adverts just working hard to convince us that we always need to save more? Dominique Olivier separates fact from fiction in age expectancy statistics. Find it here>>> |
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| Ghost Bites - local company news: |
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| Ghost Bites: The latest on Grindrod, Huge, ISA, Richemont, Sephaku, The Foschini Group and numerous Nibbles in Ghost Bites here>>> |
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| Unlock the Stock - Calgro M3 |
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| Top concerns for global financiers in today's market |
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| | | Join Investec CEOs, Cumesh Moodliar (SA) and Ruth Leas (UK), as they share their key insights from the recent IMF and World Bank meetings in Washington in the latest episode of No Ordinary Wednesday. |
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| International Business Snippet: |
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| Nissan has added its name to the bloodbath in the automotive sector, with poor quarterly results and guidance to the market that global production capacity will be reduced by 20%. Operating profit in the second quarter collapsed by 85% and the interim dividend has been scrapped. It's such a me-too brand that I'm really not surprised. Basically the poor cousin to Toyota, Nissan has no competitive strength to fight the Chinese onslaught and the response from the rest of the world's manufacturers.
In much happier news from Japan, Sony revised its 2025 revenue target slightly higher and saw operating income increase 73% year-on-year in the latest quarter. The gaming business was the highlight, particularly in digital game purchases in the PlayStation environment. Console sales were quite weak though, as we've also seen at Microsoft.
Our latest research in Magic Markets Premium is on Microsoft. The world's most important tech business from an enterprise computing standpoint isn't just adapting to the world of AI - it's driving that world forward. But does that change the Microsoft investment case? You'll find out in our research for subscribers this week. |
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| Magic Markets: Making Forex Better |
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| | | Magic Markets: Future Forex is on a mission to make forex cheaper and simpler for individuals and businesses alike. Harry Scherzer joined us to talk about their evolution from a strong crypto arbitrage foundation. Find it here>>> |
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| IG Markets Morning Call: daily macroeconomic update |
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| While US index futures hover around all-time high territory, European and Asian markets are trying to rebound from Friday’s weakness.
Asian markets in particular were under pressure on Friday, after new stimulus measures unveiled from China were digested against the prospect of increasing US tariffs being imposed by the Trump administration.
Our local bourse, the JSE All-Share Index is expected to balance out moves in its global index peers, by opening slightly lower this morning.
The dollar is back at near-term highs and the rand is softer.
Oil prices are back under pressure on the reduced threat of supply disruptions from inclement weather along the Gulf Coast, and demand concerns from China, after underwhelming stimulus efforts from the region.
Industrial metals fell significantly on Friday following the China news and in turn demand concerns.
The stronger dollar is weighing on gold prices in the near term.
There is no high impact data scheduled for today to direct markets.
Key Indicators: USD/ZAR R17.61/$ | US 10yr 4.30% | Gold $2,660/oz | Platinum $983/oz | Brent Crude $73.50
The macroeconomic update is based on the morning call update by IG Markets |
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