| Good morning Voornaam, Welcome to a new week. All the public holidays and even Mother's Day are now behind us, so it's time to get serious.
SENS certainly seems to have gotten the message, with a busy day on Friday of interesting news. AngloGold Ashanti gave us another great example of the kind of money that a gold mine is capable of making when prices go the right way. Even Sibanye-Stillwater has a positive story to tell, although the market is being far more cautious with that one.
But it was two of the smaller names that gave us spicy announcements on Friday. Mantengu Mining has gone nuclear on the share price manipulation allegations, so we will have to see how that drama unfolds. Then, out of nowhere, Raubex announced that its financials will be delayed due to a need to investigate whistleblower allegations. The market didn't enjoy that at all, sending the Raubex share price lower.
In other news, the Barloworld deal hangs in the balance as there haven't been enough acceptances yet for the offer to go ahead. The deadline for acceptances has therefore been extended. In property, we saw a substantial example of capital recycling at Collins Property Group, as well as decent numbers from Newpark REIT.
Finally, Old Mutual has announced a new CEO (an ex-Sanlam exec - the market liked that) and Montauk Renewables reported quarterly earnings.
These details and the Nibbles are available in Ghost Bites at this link>>>
Warren Buffett is famous for a reason. The latest Magic Markets podcast was a lovely opportunity to dig into some of the recent nuggets from Omaha, where Buffett was his usual entertaining and insightful self, before surprising everyone (including his successor, Greg Abel) with the news that he will be stepping down as CEO at the end of this year. Learn more here>>>
How do you feel when you read that something is Made in China? Although South Africans seem to be highly receptive to Chinese cars, the same can't be said for everywhere in the world. In fact, using MSG as an example, Dominique Olivier demonstrates that Chinese bias is a problem in many markets. Learn about it here>>>
Finally, be sure to register for Astoria on Unlock the Stock on 15th May at 12pm. Attendance is free as always, but you must register here>>>
Have a great day! |
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| SATRIX: A Day in the Life of a Portfolio Manager at Satrix |
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| | | Ever wondered how the nuts and bolts of ETFs work? What goes into index tracking and making sure that it is achieved at the lowest possible cost? And are all indices created equal from a complexity perspective?
Lauren Jacobs (Senior Portfolio Manager at Satrix) shows you what a day in the life of a portfolio manager looks like.
Get ready to learn and be inspired at this link>>> |
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| GHOST WRAP: April's droppers and whoppers |
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| There may have been many public holidays in April, but that didn't stop the market from reacting to the broader geopolitical turmoil. With recession concerns as a key theme, which stocks did well and which ones delivered a nasty drop? This podcast is an overview of recent big share price moves among larger local companies on the JSE, revealing some interesting trends. Ghost Wrap is brought to you by Forvis Mazars. You can find the recording and the transcript at this link>>> |
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| GHOST BITES - Making sense of SENS on the local market |
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| | | AngloGold's profits are much higher and Sibanye is smiling as well. The offer for Barloworld needs more acceptances. Mantengu Mining has gone nuclear on share manipulation allegations. Raubex is the subject of whistleblower allegations. There's property news from Collins and Newpark. Old Mutual has announced their new CEO. Get the details in Ghost Bites>>> |
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| Unlock the Stock - CA Sales Holdings |
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| In the 51st edition of Unlock the Stock, regular attendee CA Sales Holdings returned to the platform to talk about the recent performance and strategic focus areas for the group. The recording of the management presentation and interactive Q&A is available at this link>>> |
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| DOMINIQUE OLIVIER - Now is a great time to question our Chinese bias |
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| | | A wave of TikToks from Chinese factory owners is reshaping how we think about where the things we buy come from. By casually revealing that many brandnamed products are made in Chinese factories, these videos are forcing a reckoning with a deeper bias: our enduring discomfort with the words “Made in China”. Dominique Olivier uses MSG as a great example of the bias in this excellent piece>>> |
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| INVESTEC PODCAST: USE Inc - a superpower stumbles |
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| | | With the recent global markets turmoil, driven by US President Donald Trump’s tariffs policies, questions are being asked about the future of US exceptionalism. Jeremy Maggs hosts this episode with Annelise Peers and Richard Cardo of Investec. Get the insights in this podcast>>> |
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| International Business Snippet: |
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| Saudi Aramco suffered a 5% drop in first quarter profit. Of course, this didn't stop them from increasing their base dividend by 4.2%, as the Saudi government is dependent on these dividends to help alleviate their budget deficit - a rather interesting economic situation that isn't helped by the sheer amount that Saudi Arabia is spending on global sport to try and improve their brand as a country.
But as for the performance-linked dividend at Aramco, that fell sharply. The bull case for the company has always been based on the dividends, particularly as the price of oil (based on Brent Crude) is the same as it was 10 years ago. If dividends are in trouble, then the bull case quickly falls over - and so does the share price.
This week in Magic Markets Premium, we've covered Waste Management. This company probably isn't on your radar, yet it represents a solid utility-style investment profile with a wide moat. As our subscribers will find out in the research, you need to pay a beefy multiple for that profile. But is it still appealing? |
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| Magic Markets: Mesh.Trade - Unlocking Private Markets |
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| | | Magic Markets: As the recent trend in IPOs and delistings on public markets tells us, an increasing number of companies are looking to private markets for their capital raising needs. This means that retail investors are being shut out of these opportunities, which is particularly problematic as these early-stage opportunities usually offer the highest potential returns.
Mesh.Trade is committed to increasing access for investors, which is why the platform is designed to enable issuers to raise debt and/or equity funding.
Connie Bloem joined us to talk about why access to good quality private assets is so important in the South African market. To learn more, listen to this podcast>>> |
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| Macroeconomic indicators and IG Markets macro update |
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| US stock futures jumped overnight, following reports of "substantial progress" in US-China trade negotiations held in Switzerland over the weekend.
Chinese markets also rallied and the yuan strengthened after the Geneva talks between US and Chinese officials showed promising signs of de-escalation in the trade tensions. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced Sunday that a deal had been reached with China to reduce the US trade deficit, with more details expected today.
The dollar strengthened in early Asian trading Monday as concerns about a potential trade war between the world's two largest economies eased. The dollar index has gained putting downward pressure on gold prices.
The rand is slightly weaker this morning against a stronger dollar and we are expecting a positive open for the JSE All-Share Index today.
Oil prices also rose as improved market sentiment followed the positive trade developments between the two largest crude consumers.
Investors will now focus on US earnings reports and economic data this week, particularly Tuesday's Consumer Price Index (CPI) figures, to gauge how trade tensions have affected the economy and what they might mean for Federal Reserve rate decisions.
Key Indicators: USD/ZAR R18.17/$ | US 10yr 4.44% | Gold $3,237/oz | Platinum $1,003/oz | Brent Crude $65.59
As often as practically possible, insights from the IG Markets morning macro update by Shaun Murison will be featured here. Where this isn't possible, only indicators will be provided. If you want to learn more about trading, refer back to The Trader's Handbook, a podcast series that takes you through many of the important principles in trading. |
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