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Good morning Voornaam,

Before we get to the latest company news, a quick note on an upcoming Jaltech webinar. If you're looking to significantly reduce your tax liability, then pay attention: Jaltech's newest Section 12B solar investment offers up to a 235% tax deduction. You still have time to join the next webinar at 12pm today, or you can register for the next one on 3 July at this link>>>

Something very interesting is happening in the South African consumer space. Recent results from retailers have reflected strong growth in credit sales, yet Nedbank is seeing really soft demand for loans among households. This tells me that consumers are borrowing from retailers and BNPL providers rather than banks. Disruption is quite something to behold.

This is only one of the factors contributing to flat earnings at Nedbank, as you'll learn in Ghost Bites. Another company that hasn't had a great start to the year is Grindrod, with the latest numbers and the departure of their CEO (to go and be the CFO of Kumba Iron Ore instead) having raised a few eyebrows.

In more positive news, Attacq's pre-close update shows that they are on track to meet guidance. The timing is perfect of course, as Attacq is on Unlock the Stock tomorrow. You can register for that here.

Other good news came in from Capital Appreciation, where their payments business is doing particularly well. Sephaku is also on the up. Finally, Sirius Real Estate had no trouble in raising debt funding.

Get the details on all these updates and the Nibbles in Ghost Bites at this
link>>>

There's a new Unlock the Stock recording for you to enjoy. Tharisa joined us recently to talk through their strategy and how they are navigating the current PGM and chrome market dynamics. You can enjoy it here>>>

Check out the new piece from Duma Mxenge of Satrix on why ETFs should play a bigger role in institutional asset allocation. Even if you are a retail investor, the underlying thinking here around the use of ETFs is absolutely valid. Read it here>>>

Finally, make sure you're up to date on Magic Markets by listening to Episode 229, in which we take you on a macro world tour of the major trends in each region. It's a very efficient way to get on top of what's happening out there, available here>>>

Have a great day!

FORVIS MAZARS: Talent Scarcity: How South African Businesses can Overcome the Skills Shortage

With talent rising as a strategic priority in 2025, just under half of organisations in the Forvis Mazars C-Suite Barometer: Outlook 2025 continue to report a struggle to recruit talented people, with the emphasis shifting to high-quality employees at more junior levels. Daniella Frank and Susan Truter give more details. Get the details in Ghost Bites>>>

SATRIX: The liquidity advantage - why ETFs should play a bigger role in institutional asset allocation

Institutional investors are increasingly incorporating Exchange Traded Funds (ETFs) into their portfolios, attracted by their cost efficiency, transparency, and liquidity. As the investment landscape becomes more complex and cost-sensitive, ETFs are proving to be a powerful tool for modern portfolio management.

Duma Mxenge explores their growing role in institutional investing, advantages over traditional investment vehicles, and their impact on market liquidity and institutional strategy.

Enjoy this piece at this link>>>

PODCAST: Capital Markets in South Africa - the Think Big South Africa Competition

PSG Financial Services is the proud sponsor of the Think Big South Africa competition, in collaboration with Economic Research Southern Africa (ERSA).

PSG wants to encourage South Africans to get involved in their country at the highest level, bringing forward policy ideas and constructive solutions to drive conversations and real change in our country. PSG CEO Francois Gouws joined me to explain why they are such strong supporters of this initiative.

Enjoy it here>>>

GHOST BITES - Making sense of SENS on the local market

Attacq is on track for full-year guidance. Nedbank had a soft start to the year. Grindrod is tough to gauge at the moment. Capital Appreciation and Sephaku have positive stories. Sirius Real Estate had no trouble raising debt funding. Get the details in Ghost Bites>>>

Unlock the Stock - Tharisa

In the 56th edition of Unlock the Stock, Tharisa returned to the platform to talk through their recent numbers and strategy in the PGM and chrome market. The recording of the management presentation and interactive Q&A is available at this link>>>

DOMINIQUE OLIVIER - DreamWorks: when collaborators become competitors

When you sideline a rainmaker, you can’t act surprised when they start making it rain somewhere else. This is the story of how one botched promotion led to the creation of a real thorn in Disney’s side - and set a whole new direction for the animation industry. Welcome to the tale of DreamWorks, as told by Dominique Olivier in this piece>>>

INVESTEC PODCAST: No Ordinary Wednesday - a 20-year perspective on global investing

Twenty years on, the managers of the Investec UCITS World Axis Core Fund reflect on what two decades of global investing have taught them and what investors should expect next. Join Investec Investment Management’s Head of Multi-Manager Investments Ryan Friedman and Fund Manager Bronwen Trower in conversation with Jeremy Maggs in this podcast>>>

International Business Snippet:

Here's something I really didn't expect: FedEx came in ahead of market consensus on both earnings and revenue, with much progress made in cutting costs and plans to save another $1 billion in the coming year. I can understand the cost cutting and impact on profits, but I'm genuinely surprised that revenue was ahead of expectations in such a difficult period from a macroeconomic standpoint.

Some of the pain is still coming, with guidance for the next quarter reflecting a significant headwind due to the drop in expected trade between China and the US. The mitigating factor here is US domestic parcels, which showed strong growth in the latest quarter.

This week, we are covering PepsiCo and all its problems that have led to massive recent underperformance vs. Coca-Cola. The entire research library in Magic Markets Premium is available for just R99/month. Invest in yourself and give it a try!

Magic Markets: Mesh.Trade and the Titans

Magic Markets listeners have become familiar with AnBro’s approach to building global equity portfolios with different mandates. Titans is just one such example, focusing on an equal-weighted portfolio of best-of-breed stocks across various sectors.

With Titans now available on Mesh.Trade’s platform alongside the other AnBro offerings, it was the perfect opportunity for Craig Antonie of AnBro to join us to talk about the fund strategy, accompanied by Connie Bloem of Mesh.Trade to talk about the platform offering.

We covered these topics here>>>

Macroeconomic indicators and macro update

The ceasefire between Israel and Iran has reignited interest in higher-risk assets, with US and European futures aiming to extend their recent gains, while most Asian markets are also trading in positive territory this morning.

Following the ceasefire announcement, the US dollar has renewed a broad sell-off as demand for safe-haven assets subside.

The JSE All-Share Index is expected to open higher, in line with global markets. The improved risk environment has also supported the South African rand, which has strengthened notably against the weaker US dollar.

In commodities, gold prices have seen a modest recovery from yesterday’s lows, largely driven by the softer dollar. Oil prices have dropped to multi-week lows, returning to levels last seen before the Israel-Iran conflict.

At the moment, we are seeing the unwind of the conflict premium previously priced into markets.

This update is provided by Shaun Murison. Connect with him on LinkedIn here.

Key Indicators: USD/ZAR R17.75/$ | US 10yr 4.29% | Gold $3,332/oz | Platinum $1,317/oz | Brent Crude $68.22