You've got lots of important stuff to enjoy this morning, so I'll keep this brief.
In Ghost Bites, Absa gave us the big news yesterday with the announcement of early retirement of the CEO. They also released earnings, which went backwards mainly thanks to pressure in Africa, yet the market gave the share price a boost. That can only be because of the change in management. Investors really don't care about people's feelings, especially outgoing CEOs!
Other important stuff included Aveng with the news of a potential corporate split into the two main operations. Argent has an overseas acquisition. Coronation is paying a dividend after winning the tax case. Hulamin, MTN and Thungela also released important numbers, with MTN trying to extend its B-BBEE deal so it doesn't mature worthless at the end of the year. Sadly, highly leveraged B-BBEE deals often end up in trouble, particularly when they depend on a listed share as the only underlying asset.
Like I said, you've got lots of reading to do. Get Ghost Bites here>>>
People always talk about "doing your own research" in the context of stocks. That's great, but what does it actually mean to research stocks? How do you even start going about this? What is the difference between a top-down and bottom-up approach? To answer these questions and more, we covered this topic in the latest Magic Markets podcast>>>
For another great podcast, make time for Episode 4 of The Trader's Handbook, my collaboration with IG Markets South Africa. You'll learn all about various trading strategies and how they differ in the market. When you look at charts, you'll start to be able to recognise the types of strategies that traders are using and how that drives market movements. Find it here>>>
Have a great Tuesday! |
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FEATURED: The Trader's Handbook Ep 4 |
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| | IG Markets Episode 4: The markets are as varied as they are beautiful, so it's no surprise that there are various different trading strategies available. Get an overview of the approaches taken by traders in the latest episode at this link>>> |
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FEATURED: How to Research Stocks |
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Magic Markets: Everyone talks about researching stocks and the importance of research, but how do you actually go about doing it? In the latest Magic Markets podcast, we talk about our approach to research. Read it here>>> |
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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: The rise of self-directed investing |
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Invested 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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Ghost Bites: The latest on Absa, Argent, Aveng, Coronation, Hulamin, MTN and Thungela, along with various Little Bites in Ghost Bites here>>> |
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| | Ghost Wrap: With thanks to Forvis Mazars, this podcast brings you the latest on Italtile, Cashbuild, Quilter and the gold duo of AngloGold and Gold Fields, all in just a few minutes in the Ghost Wrap podcast. |
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Unlock the Stock: In the latest session, Tharisa Plc returned to the platform for an update on the company performance and strategy going forward in PGMs and chrome. You can watch the recording 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: What is the right way to prepare for a major sell-down in the market, or even a crash? It's all about research and watchlists, as well as having money that is ready to go into those dips. We discuss these concepts in this podcast>>>
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International Business Snippet: |
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A report by Deloitte suggests that pricing pressure is starting to bite travel plans for Americans. This is very much in line with what we saw in the recent Airbnb numbers, where earnings visibility is now a thing of the past as trips are being booked later (or not at all).
When things become a lot more expensive, demand goes down. That's how markets work. Another interesting insight is that Americans are making more frequent trips again rather than fewer, blockbuster trips.
Behaviour is normalising after the pandemic, as it always does. The "once-in-a-lifetime" thinking is returning to "hey, we can go on holiday often" - and long may it stay that way. This has major ramifications for the travel industry, which has been able to get away with huge price increases since lockdowns.
We are covering Walmart in Magic Markets Premium this week. For subscribers to Magic Markets Premium, the investment of R99/month is the best investment they can make. |
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IG Morning Call: daily macroeconomic update |
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All rooms are sea-facing once again as global equity markets from the US to Asia continue to rise.
The dollar remains soft in anticipation of a rate cut next month. Markets now await commentary from Fed Chair Jerome Powell later in the week, for clues as to whether to expect a 25 or 50 basis point move.
The JSE All-Share Index is expected to open higher this morning, following its international peers. The rand is trading around its best levels in more than a year.
Oil prices were lower yesterday and remain on the back foot this morning. The move correlates with news that Israel has agreed to discuss issues blocking a ceasefire deal in Gaza.
Gold continues to trade near the all-time highs, supported by a softer dollar.
There is no high impact economic data scheduled for today.
Key Indicators: USD/ZAR R17.74/$ | US 10yr 3.88% | Gold $2,501/oz | Platinum $960/oz | Brent Crude $77.74
The macroeconomic update is based on IG's morning call update |
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