On our local market yesterday, we had a few examples of companies that are struggling. AECI gave the market a negative surprise with a significant drop in earnings, while Vodacom reminded me once more why the telecoms sector isn't for me. Over at Balwin, they've decided to follow a strategy of developing a portion of their land for rental rather than sale, which I don't think will do the share price any favours. As always, you'll get my views on these stories and others in Ghost Bites.
I'm looking forward to Unlock the Stock with Tharisa later. In case you haven't done so already, you can register to attend for free here. Unlock the Stock is a wonderful format for retail investors to put on their analyst hat for an hour, with the ability to pose questions directly to management. For example, here's the recording of the recent event featuring Attacq and Capital Appreciation.
If you're looking for offshore exposure opportunities, don't forget that the Investec Nikkei 225 Autocall and Euro Stoxx 50 Autocall applications close on 8 August. You can find out more about both products here.
Have a great day! |
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FEATURED: The dinosaurs are dying |
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| | Fedgroup: The modern world is no place for a dinosaur. This is why Fedgroup does things differently, with a focus on their clients and delivering superior risk-adjusted returns to investors. Read more about their approach here>>> |
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FEATURED: The Trader's Handbook Ep 2 |
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IG Markets collaboration: In the second episode of this exciting new podcast series, Shaun Murison of IG Markets South Africa joined me for a discussion on leverage, the importance of newsflow and how stop losses work, alongside other trading concepts. Get ready to learn about this wonderful element of the markets at this link>>> |
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FEATURED: Investec Structured Products new product applications close on 8 August |
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| | Investec Structured Products: Applications for the Nikkei 225 Autocall and Euro Stoxx 50 Autocall close on 8 August. Don't miss the opportunity to learn about these offshore investment opportunities. |
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FEATURED: Dominique Olivier on cancel culture |
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Dominique Olivier: From Delacroix's masterpiece to the iconic photo of Trump after the assassination attempt, the concept of cancel culture (online or otherwise) isn't new. Dominique digs into the history books in this piece. |
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Ghost Bites: Get the latest on AECI, Balwin, Primary Health Properties, Vodacom and more in Ghost Bites here>>> |
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| | Ghost Wrap: Get the latest on Richemont's sales, AVI's profitability, Karooooo's growth and the remuneration package for the new CEO at Prosus, all in just a few minutes in the Ghost Wrap podcast. |
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Unlock the Stock: Attacq and Capital Appreciation returned to Unlock the Stock to present the recent numbers and take questions from the attendees of the live event. Learn about both companies by watching the recording here>>> |
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Utshalo wants more retail investors: Paul Miller is hugely passionate about connecting retail investors to opportunities on the listed market. This means working with listed companies to allow retail investors to participate in capital raises, with Orion Minerals as the latest example. Learn more here>>>
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- Magic Markets - geopolitics, defense stocks and tech ideas: Dimitri Zabelin joined us to share his international expertise on topics ranging from US jobs data (and what to be careful of) through to a thesis for defense stocks. Of course, we had to discuss tech as well. Find it here>>>
- Investec No Ordinary Wednesday podcast: The market may be unpredictable, but your investment strategy doesn’t have to be. Investec Investment Management experts share their insights on what approaches are winning, common mistakes investors make, and why staying the course is important. Enjoy it here>>>
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International Business Snippet: |
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There are tough numbers from the automakers at the moment, like Stellantis reporting a 48% drop in net profit for the first six months of 2024. The group is massively struggling in North America in particular, which is obviously a key market.
Over at Ford, second-quarter earnings beat on revenue but missed on profits due to warranty cost issues. This speaks directly to the quality of vehicles built before 2021.
As for Tesla after the release of disappointing numbers, well, that share price is down 14% over five days. It's also down 19% over 12 months.
Our latest Magic Markets Premium report covers CrowdStrike, which is highly topical after a software update broke Windows computers. Having shed a quarter of its value in the past week, is it a buy at these levels? To get access to this research and the rest of the vast library, subscribe to the platform here. |
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IG Morning Call: daily macroeconomic update |
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US equity benchmarks ended significantly lower overnight, led by losses in the tech sector, after results from Tesla disappointed.
The dollar index has softened, weighed down by the Japanese Yen as the carry trade starts to unwind.
Weakness in the US is echoing through to Asian and European markets, with a softer start expected for the JSE All-Share Index this morning as well.
The rand remains weakened in risk-off trade.
Oil prices have continued to fall on the prospect of a ceasefire in the Middle East and the suggestion of softer Chinese demand through waning economic growth.
Gold has continued to correct from all-time highs despite a softer dollar.
Traders will want to watch out for local PPI inflation data this morning as well as Advance US GDP data out this afternoon.
Key Indicators: USD/ZAR R18.40/$ | US 10yr 4.28% | Gold $2,377/oz | Platinum $943/oz | Brent Crude $80.33
The macroeconomic update is based on IG's morning call update |
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