I'm still bearish on local retail
The latest news from Truworths has done nothing to alleviate my concerns about local retail. Although the group result looks decent, that's entirely thanks to a strong performance in the UK (the Office business) that looks even better once translated into rands.
In Truworths Africa, comparable store sales fell 2.2% in the 17 weeks to 29 October and inflation was 9%. This means that sales volumes were down by double digits. Despite what is clearly a difficult environment, the group expanded trading space by 1.1%.
Speaking of expansion, Sibanye-Stillwater is using this point in the cycle to pick up assets. The acquisition of Reldan in the US brings the group a recycling business that turns industrial and electronic waste into gold, silver, palladium, platinum and copper.
Another big story this morning is Multichoice, where the Nigerian currency situation is a major concern. Much like at MTN and Nampak, the challenges with African currency depreciation just aren't going away. Based on last night's hawkish Fed commentary and the weak Chinese data coming through, I'm not sure there's much chance of a near-term improvement.
This is exactly why it is so important to read TreasuryONE's macroeconomic commentary as the backdrop for your equity investments!
You can also get the latest numbers from AngloGold, Novus, PPC, Primeserv, Sappi and Sephaku, along with the details of Life Healthcare's disposal of Alliance Medical Group and how much money the advisors made. Spoiler alert: it's a lot.
Read Ghost Bites at this link>>>
