Local company news:


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Calgro M3 has put together a rather interesting transaction. Together with Eris Property Group, the company will develop Bankenveld District City. This is located in prime position north of Johannesburg and pretty close to Sandton. Whilst the residents in surrounding areas won't love the traffic impact of between 20,000 and 30,000 new housing units, Calgro M3 shareholders have a real opportunity here.

In other property news, Emira has sold a portfolio of 13 properties in the Western Cape to Spear REIT, including an office building that I once worked in for a while! The deal is worth nearly R1.15 billion and it solves a problem for both funds. Emira unlocks a lot of capital to reduce debt or deploy elsewhere and Spear achieves a major boost to its portfolio in a single deal.

More M&A news came from Invicta, with the acquisition of Nationwide Bearing Company in the UK. This is a perfect example of buying a familiar product category in a less familiar market. It's a lot better than an unfamiliar product in an unfamiliar market, that much I can tell you. 

Other acquisition news came from African Rainbow Minerals, which has taken a 15% stake in Surge Copper Corp. This is an early stage mining group listed in Toronto. We also saw deal news at BHP, where Blackwater has been bought by Whitehaven. It's a rather fun combination of names, isn't it?

Finally, Gold Fields announced the commencement of production at Salares Norte. There are production struggles elsewhere though, so shareholders will need to be cautious of that.

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Macroeconomic Update

The dollar took a breather from its four-month high as the market awaits important economic reports today, like US services sector activity and job creation data. US yields continue to rise amid reduced expectations of an interest rate cut by the Fed in June.

Gold reached another record high, driven by rising geopolitical tensions and a weaker dollar. PGM prices also moved higher. Oil is nearly $90 a barrel, with ongoing conflicts in the Middle East and on Russian oil facilities. 

Key indicators: USD/ZAR R18.79; US 10-year 4.36%; Gold $2,283; Platinum ZAR R17,362; Brent Crude $88.97

This macroeconomic update is based on TreasuryONE's morning update.

International company news:


The House of Mouse is in disarray. Disney has suffered one box office disaster after the next (Dominique Olivier wrote about this recently here).

There's a huge battle around the leadership of the company, with activist shareholders all over this thing and an important meeting scheduled for today. Eventually, investors lose patience with years of poor performance. Perhaps in the hope of change, the shares are up a whopping 35% this year. As someone who has suffered through Disney in my portfolio and tried to manage my way out of the position, this has been a very useful rally.

And in other news, GM announced its first quarter sales. EV sales were just 2.8% of total units. Buick was the only highlight in the group (up 16.4%), with overall group sales down by 1.5%.

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