| Good morning Voornaam, Quick links: After a daft amount of news last week, Friday was a breather. There were two very important stories though, with both MTN and Northam Platinum covered in Ghost Bites, brought to you by Fedgroup. Dominique Olivier tells us the story of creatives fighting back against AI - literally! In this rage against the machine, artists are fighting for their intellectual property rights in extraordinarily interesting ways. Read about it here. A brand new episode of the Magic Markets podcast gives you the latest on Cashbuild, Italtile and Home Depot, made possible by B2IT. Made possible by Mazars, the latest episode of the Ghost Wrap podcast brings you the latest on NEPI Rockcastle, Vukile, Italtile, Bidcorp, Spar and Pick n Pay - available here. If you're interested in Afrimat, there's an Unlock the Stock to sink your teeth into. Get a deeper understanding of the company strategy by watching the recording here. |
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| LISTEN: The ETF product design process
with Siyabulela Nomoyi of Satrix |
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| | | Delving into the ETF product design process and with a discussion on the latest ETF product launches at Satrix, Siyabulela Nomoyi joined me for this insightful conversation.
Don't miss it! |
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| READ: Rage against the machine: creatives vs. AI
(by Dominique Olivier) |
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| As AI threatens the livelihood and intellectual property rights of many artists around the world, Dominique Olivier tells the story of Glaze and Nightshade - the weapons being used by artists as they rage against the machine. Read it here. |
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Local company news:
Ghost Bites is brought to you by Fedgroup.
Short, but not sweet. That's the summary of Friday's news, so buckle up.
MTN has suffered a decimation of its profits. HEPS has been hammered by non-operational items like hyperinflation and forex losses. When you chase growth in frontier markets like Nigeria, this is of course the risk. The stock peaked at over R200 in early 2022 and is all the way down in the mid-R80s. Ouch.
At Northam Platinum, things need to improve in the PGM price. At the prices experienced over the six months to December, only one of the operations is profitable. That's not good. Although the group has a substantial cash pile, earnings have just about evaporated.
Get all the details in Ghost Bites here>>>
There's a brand new episode of the Ghost Wrap podcast for you to enjoy, made possible by Mazars. In the time it takes to drink your coffee, you can get the latest on NEPI Rockcastle, Vukile, Italtile, Bidcorp, Spar and Pick n Pay. Get it here>>> |
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| LISTEN: Magic Markets podcast |
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| In Episode 164 of Magic Markets, we compared an offshore giant to South African equivalent companies. Home Depot is the US blue chip and Cashbuild and Italtile are the local choices.
By kicking off with how terrible local macroeconomic conditions have been for Cashbuild and Italtile, we make the case for learning about and investing in offshore alternatives.
Expand your horizons in this podcast, brought to you by data and process automation specialists B2IT. |
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| Currencies, commodities and rates: TreasuryONE Market Update Gold has reached a new high for the year, up to $2,088 on Friday after mixed reports about the US economy. S&P Global showed economic growth, but the ISM report suggested a decrease in manufacturing activities. US Treasury yields also dropped and the dollar retreated a bit.
Local GDP data is due on Thursday, with South Africa expected to have grown slightly by 0.2% in Q4 of 2023 after decreasing by the same amount in the previous three months. This would imply full year growth of 0.8%.
OPEC+ has reduced oil production by 2 million barrels a day until the end of June to try and increase oil prices.
Remeber, the TreasuryONE YouTube channel is a wealth of knowledge and insights into the market. Find it here>>>
Key indicators: USD/ZAR R19.11; US 10-year 4.20%; Gold $2,080; Platinum ZAR R16,831; Brent Crude $83.61 |
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| READ: Stability doesn't always have to come at a cost
with Fedgroup |
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| | | Fedgroup believes that a combination of fixed-term investments can do more than just withstand a battering. In fact, they cann offer solid returns as well.
Learn more here. |
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International company news:
For all the nonsense I've had to suffer through about how only electric vehicles will be in showrooms in the next few years, it's rather satisfying to see a serious reality check kicking in. No matter how much European regulators (and those invested in Tesla and the EV supply chain) want it to be true, it's simply not going to pan out that way. The infrastructure isn't there and neither is the consumer demand in the absence of unsustainable subsidies.
You know what will work? Hybrids. Lots of hybrids. This is the "best of both" bread on the shelf. Toyota has been vocal about focusing on this technology. As the hype bubble is bursting around EVs, they are starting to look like the smart money in the room. This is why we will be covering Toyota this week in Magic Markets Premium for our subscribers.
The company is investing around $2.2 billion over the next few years in Brazil to build hybrids and SUVs, so Toyota understands what emerging markets want. If we had reliable infrastructure in South Africa, just imagine how much more investment we could be attracting?
If you're reading this section every day, it's because you want to cast your eyes farther afield for opportunities. Magic Markets Premium is your key to understanding global stock opportunities, with new stock research every week and a subscription price designed for South Africans.
For just R99/month, you get access to the entire library of around 120 research reports and podcasts. Expand your investment horizons by subscribing here. |
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| READ: Satrix launches Satrix JSE Global Equity ETF |
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| | | Satrix is releasing a new product that gives a higher weighting to local companies with international listings.
In other words: more of an offshore component. Find out more in this article. |
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| You should expect us in your inbox Monday – Friday. If you don’t receive an email, please check your spam, or junk folder and “move us” into your primary inbox to ensure you get it each morning.
Disclaimer
Our content is intended to be used and must be used for informational purposes only. You must do your own analysis before executing any investments or strategic decisions, based on your own circumstances. We do not provide personalised recommendations or views as to whether an investment approach or corporate strategy is suited to the needs of a specific individual or entity. You should take independent financial advice from a suitably qualified individual who gives due regard to your personal circumstances.
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