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Good morning Voornaam,

Finally, some news that adds to positive local sentiment! Hudaco is acquiring Isotec, a provider of insulation materials and solutions. The deal is worth up to R709 million, depending on how the earn-outs play out. The industrials space is a good example of an area of the local market that still offers consolidation opportunities, although this isn't a traditional bolt-on acquisition. Instead, Hudaco is chasing diversification.

Over at Murray & Rescue - I mean Murray & Roberts - the loan funding is flowing in thick and fast to keep the place alive. The business rescue practitioners hope to release a plan by the end of March. In the meantime, having watched these things play out before, it's highly likely that equity value is transferring from shareholders to debt providers as we speak. In other words: I'm glad that I'm not a shareholder.

Other news includes a production update from South32, as well as another odd announcement from Trustco - they are now considering dropping all of their listings! Sigh.

To get these insights and more in the Nibbles, read Ghost Bites>>>

If you are a qualifying Black-Owned business looking for equity funding, don't sleep on the opportunity being offered by MIC Khulisani Ventures. After we released a podcast with full details at the end of 2024, the team has summarised the opportunity in a new article that includes a link to the podcast for those who missed it. You only have until the end of January to apply, so don't delay!

Looking for some inspiration for marketing strategies in your business? IKEA is a name that you probably already know, famous for its affordable furniture. But what you might not know is that the company sells more meatballs than anything else! Welcome to a strategy built around hungry customers. Dominique Olivier tells the story here>>>

If you haven't gotten there yet, the latest Magic Markets episode will give you plenty of details into how retail turnarounds work. These can be lucrative for those with a higher risk appetite. They can also be disastrous. Learn about the key things to look out for in this episode>>>

Have a great start to your week!

SATRIX: Low-risk high-reward - the low-volatility anomaly

Does taking higher risk always lead to higher returns? Or is there something to be said for seeking out lower volatility equity exposure, especially if it can generate similar overall returns? Nico Katzke of Satrix digs into the numbers to bring you this insightful piece on portfolio and risk strategy. Enjoy it here>>>

Ghost Wrap - five insights from December

Ghost Wrap: There were some great stories in December that are well worth keeping in mind in January. Italtile's share price needs a careful watch. Prosus is making major acquisitions again. Renergen is still dealing with teething issues - and a legal dispute as well. Metair is getting very little out of its Turkish business. Finally, will Bell Equipment shareholders kick themselves? I cover these topics in Ghost Wrap, brought to you by Forvis Mazars and available here>>>

MIC KHULISANI VENTURES - A game-changer for Black-Owned businesses in South Africa

MIC Khulisani Ventures is looking for Black-Owned business with high scalability and a commitment to growth. Equity funding is available and applications close at the end of January 2025. Get the details here>>>

GHOST BITES - Making sense of SENS on the local market

Hudaco announced an acquisition in South Africa. Murray & Roberts updated the market on the business rescue process. South32 released a production update. Trustco is being weird again. Get the details in Ghost Bites>>>

DOMINIQUE OLIVIER - The wisdom of the meatball

The best salesperson in Swedish business IKEA’s history isn’t Sven or Astrid or even Nils - it’s the meatball! Since 1985, flatpack-furniture giant IKEA has sold more than a billion of its trademark Swedish meatballs every year. But how did a furniture company come to rely on meatballs to sell couches? The answer lies in consumer psychology. Dominique Olivier explains>>>

Unlock the Stock - KAL Group

Unlock the Stock: KAL Group joined the platform for the first time to talk about the performance and strategic focus areas in the broader agriculture industry. Enjoy the presentation and Q&A here>>>

MAGAnomics: Trump and the global economy

What impact will Trump’s presidency have on the global economy and emerging markets? Tune in to the latest episode of the No Ordinary Wednesday podcast for insights from Investec experts, Annabel Bishop (SA) and Ellie Henderson (UK).

International Business Snippet:

Memecoins. Last-minute pardons. First-minute pardons. The US political circus got all the focus yesterday, not least of all because US markets were closed.

While scanning through headlines and trying to avoid a truly spectacular mess that sounds more like a Monty Python skit than the leaders of the Free World, I did notice that there are strong rumours that Santander is thinking about an exit from the UK market. One of the reasons being cited is the issue around car loans, which sounds to me like the same problem that local banking group FirstRand is indirectly dealing with in that market. Another reason is that the banking group is achieving sub-par returns in the UK. Of course, the bank is denying these rumours - for now.

The US may be a wild place at times, but at least there's growth and activity. When last did you see a headline with exciting news about a European or UK-based listed company?

I guess we will just have to put up with the Memecoins then. Here's hoping Netflix dishes up some excitement today. They need strong results to justify that valuation!

Our latest research in Magic Markets Premium is on Walgreens, a US pharmacy retailer that finds itself at a very appealing point in its turnaround. If the valuations of the leading tech companies make you feel dizzy, then Walgreens would be a welcome palate cleanser.

If you're ready to give your US market knowledge a proper boost, then subscribe today with no minimum monthly commitment. It's worth it.

Magic Markets: The year ahead - buckle up!

Magic Markets: To kick off the year, we couldn’t resist talking about the major themes that have carried over from 2024 into a new calendar year. US – China relations, interest rates, frothiness in equity valuations – it’s all in here, along with a sobering discussion that gives context to the JSE performance last year vs. global alternatives. Find out more here>>>

Macroeconomic indicators

US index futures traded higher overnight, while the dollar and US treasury Yields weakened following slightly more cautious commentary around import tariffs from US president Donald Trump at his inauguration.

We are seeing some of these moves unwind in early trade today, with US and European Index futures slightly lower as the dollar recoups some marginal strength. Asian equity markets have managed to hold onto gains.

On balance, we are expecting a flat start for the JSE All-Share Index this morning, while the rand is modestly weaker in early trade.

Gold has pushed to its best levels in more than a month, supported by the Trump tariff rhetoric.

Oil prices are trading at their lowest levels in roughly a week after Trump said that the US would look to increase production of fossil fuels.

Key Indicators: USD/ZAR R18.59/$ | US 10yr 4.53% | Gold $2,727/oz | Platinum $947/oz | Brent Crude $79.25

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.