| The market continued its winning streak yesterday, with the JSE's All Share Index adding a further 2.2% to reach its highest level in more than three-months on optimism that the global economy will rebound from the Covid-19 pandemic. Again, Sasol was one of the big winners, rising 6.2% to R124.75. With Sasol up around 35% in a month, is this the beginning of a major recovery? Ingham Analytics has issued a Searchlight on Sasol called "Henry sends a message", which may seem an odd title. That message is lower for longer on the price of natural gas - which is good for the Lake Charles Chemicals Project but not good enough to offset other pressing challenges for the beleaguered oil and chemicals group. Ingham Analytics also has a preliminary estimate of just how much Sasol's EPS will fall by - and it anticipates it may even be worse because of several variables. It also updates its view on the investment merits and a trading tactic for the stock. For Wilson Bayly Holmes-Ovcon, the good news clearly outranked the bad yesterday. Its shares rose after it confirmed that potential buyers were circling its Probuild business in Australia. At the same time, problems at its operations in that country will result in the group reporting a loss for the year to end-June. And after withdrawing its interim dividend, a full-year payout is unlikely due to Covid-19. Meanwhile, Santam has raised provisions due to Covid-19 but says motor claims declined in April as the lockdown kept cars off the road. Don't worry, policyholders were given a discount for the month! Also today, Anglo American Platinum has had to temporarily reclose its ACP Phase B unit in Rustenburg due to a water leak and Grit Real Estate Income Group is paying a final dividend but it won't be as high as last year's. I hope you have a good day. Stephen Gunnion Managing Editor, InceConnect
Take a look at the latest Insights and sector reports From Ingham Analytics. Banking sector: "South African banks' balance sheets surge" Ingham Analytics have been keeping readers up-to-date with banking related matters for several months and it hasn't been rose tinted. Those who followed the advice would have saved themselves a lot of money. Can South African banks weather Covid-19 liquidity challenges? What about future loan losses? Should you as a customer or shareholder be worried? Can traders profit form short term market gyrations that have sent bank share prices down sharply? Top trader Andrew Kinsey gives his insights in the latest Ingham Analytics note "South African banks' balance sheets surge". Prosus/Naspers/Tencent: "Illusory value" If you haven't seen it yet then the Ingham Analytics note entitled "Illusory value" on Prosus (and by extension Naspers and Tencent) will be of interest. | 