Are you looking forward to Mohammed Nalla's webinar with IG Markets South Africa this evening on the US election? I know that I am! Remember that you can register for free here. You can also read IG's piece on what a Trump win could mean for South African markets. The US may be far away, but it has a major impact on the world.
Much closer to home, the mini-budget will be presented tomorrow by Minister of Finance, Enoch Godongwana. To help you understand what to look out for, Investec's No Ordinary Wednesday podcast featured Annabel Bishop and Tertia Jacobs in conversation with Jeremy Maggs to unpack this topic. Enjoy it here>>>
In company news, Pick n Pay's results were the likeliest focus area for the market yesterday. Pick n Pay has one great business (Boxer) and another business that looks like it went 12 rounds with an angry boxer. The market support for the Boxer listing is likely to be very strong, leaving Pick n Pay to pick up the pieces in its core business to try and get it back to break-even as a starting point.
Another bloody nose on the market can be found at Balwin, where apartment sales are in the doldrums and pricing is under pressure as a result. They desperately need deeper interest rate cuts to support sales.
PPC has a more positive story to tell in its earnings expectations, but not because of exciting stuff like revenue growth. Instead, it's all about cost reductions and other efficiencies.
There's never a dull moment elsewhere on the JSE, with Renergen having a large fight with a solar developer (this is potentially a serious problem) and Mantengu Mining putting out a SENS announcement that makes very little sense at all. I somehow doubt that they paid $100k for a business with a NAV of R205 million.
In deal news, Coronation's B-BBEE circular is out, Delta Property Fund managed to lock in five property sales to unrelated parties and Gold Fields completed the Osisko acquisition in what feels like record time. Finally, Southern Palladium has reached the milestone of a prefeasibility study.
In case it's not obvious, it was a busy day! I did the hard yards so that you don't have to, with all these stories plus the usual assortment of Nibbles covered in Ghost Bites here>>>
Hungry for more company news? The latest Ghost Wrap podcast is a helpful six-minute summary of recent retail news. I covered Clicks, Dis-Chem, The Foschini Group and Cashbuild. Brought to you by Forvis Mazars, you'll find it here.
Have a great day!
PS: don't leave your 2025 financial planning until 2025! I know it's nearly the end of the year, but this is the time to push through and prepare. To help you navigate this process, here's a great piece from Satrix on things to focus on. |
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THE TRADER'S HANDBOOK: Insights and strategies for currency markets |
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| | In this episode of The Trader's Handbook, Shaun Murison from IG Markets South Africa joined me once more to explore the fascinating and often misunderstood world of forex trading.
We broke down the complexities of currency pairs, leverage, and volatility while dispelling common misconceptions about the risks involved.
The podcast and detailed transcript are available here>>> |
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INVESTEC: India a gateway to outsized emerging market opportunities |
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As the global economy shifts from a high inflation and high interest rate environment into the next interest rate cutting cycle, global investors are casting their net wider in their search for returns. India is an attractive opportunity. Investec explains why in this article>>> |
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FEDGROUP: Don't let the markets haunt you |
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| | In the month of Halloween, it's great to learn about how Fedgroup achieves solid returns with reduced levels of risk, making the whole experience far less frightening.
This is a topic close to my heart of course, with important topics like diversification and the use of alternative assets.
The podcast and detailed transcript are available here>>> |
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SATRIX: Don't wait until 2025 for your financial goals |
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Satrix: As October (which also happens to be Financial Planning Month) draws to a close, it’s easy to just write off the rest of this year and promise yourself that you’ll start in January. Instead, this is the time to plan and build momentum. Satrix gives some great practical tips here>>>
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DOMINIQUE OLIVIER: How Marvel cracked the Universe |
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| | Getting warm bodies in cinema seats is no easy feat in the age of streaming (just ask the likes of Ster-Kinekor or NuMetro). Yet despite the rising challenge, Marvel managed to create something in 2008 that drew audiences back to cinemas in droves – and they managed to keep that drive going for just over a decade. How did they do it and why hasn't DC done the same? Find out here>>> |
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Ghost Bites - local company news: |
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Ghost Bites: The latest on Balwin, Coronation, Delta Property Fund, Gold Fields, Mantengu Mining, Pick n Pay, PPC, Renergen, Southern Palladium and numerous Nibbles in Ghost Bites here>>> |
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Unlock the Stock - Pan African Resources |
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| | Unlock the Stock: Pan African Resources returned to the platform to talk about the performance and prospects in an environment of favourable gold prices. Enjoy the presentation and Q&A here>>> |
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Investec podcast: mini-budget preview |
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| | In the latest episode of the No Ordinary Wednesday podcast, Investec Chief Economist Annabel Bishop and Treasury Economist Tertia Jacobs discuss the Finance Minister's priorities ahead of the mini budget on 30 October. Enjoy it here>>> |
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International Business Snippet: |
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Ford managed to slightly beat third quarter expectations, but still guided to the low end of its full-year forecast. Warranty costs have been a major drag on the story this year, ruining what has been a decent outcome in finding supply chain and manufacturing efficiencies. The second quarter was particularly poor for warranty costs, so there were nervous faces coming into this quarter. Thankfully, there was some improvement.
Of course, the EV unit still lost a fortune ($1.22 billion), but less than last year as they've pulled back somewhat on that strategy.
Our latest research in Magic Markets Premium is on Netflix. As the clear winner in the streaming wars, this has become a great business. Is it great enough to justify the valuation? You'll find out in the latest report for our subscribers this week. |
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Magic Markets: What can we learn from market sector rotations? |
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| | Magic Markets: Although there’s a risk of churning your portfolio too often if you become obsessed with short-term market movements, there’s a lot of value to be gained from the way Mohammed Nalla does his quarterly rotation work for institutional clients. In this episode, we cover recent sector performance in the US market and where some of the future gains may be found. Find it here>>> |
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IG Markets Morning Call: daily macroeconomic update |
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US equity benchmarks traded mixed into the close last night with the Dow up, while the S&P 500 and Nasdaq-100 were down, led by the tech sector which cautioned ahead of Alphabet, Microsoft and Meta earnings expected later this week.
European index futures are marginally firmer in early trade after a positive day yesterday. Asian markets are trading mixed this morning.
On balance we are expecting a flat open on the JSE All-Share Index following yesterday's gains.
The dollar has drifted modestly lower, although remains near its strongest levels of the month against a broad-basket of currencies. Recent strength has been most notable against the Japanese yen which has softened on election outcomes and its assumptions towards monetary policy to follow. The rand trades at more or less the same levels we saw yesterday.
Oil prices have continued to drop, finding some relief from news that Israel’s retaliatory airstrike on Iran bypassed oil and nuclear facilities within the region.
Gold is again flirting in new high territory, finding some support from a marginally softer dollar and US election angst.
Traders will want to keep an eye out for JOLTS Job Openings and Consumer Confidence data out of the US this afternoon.
Key Indicators: USD/ZAR R17.70/$ | US 10yr 4.27% | Gold $2,749/oz | Platinum $1,044/oz | Brent Crude $71.00
The macroeconomic update is based on the morning call update by IG Markets |
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