Good morning Voornaam,
When companies are busy negotiating significant potential corporate actions, like mergers, they are conscious of the impact on the share price. Investors can get jittery when they haven't received an update on the progress of negotiations.
It's therefore common for companies to issue announcements that simply remind shareholders that they should be cautious when trading in shares as the company is still busy with negotiations. Although that sounds like no news, it is news because it means that a deal could still be on the cards.
This is why property fund Arrowhead reminded the market yesterday that a potential merger with Fairvest is still on the cards.
Another interesting update came from Anglo American regarding rough diamond sales by De Beers. There's been strong demand recently in markets like the US and China for diamond jewellery in line with a global theme of recovery for luxury goods. Perhaps we really are in a "roaring 20's" situation for luxury items.
Investors in York Timber should be keeping an eye on the company's SENS announcements. There have been some big buyers in the market who have driven the price up 25% in the past 7 days.
Today, I decided to give Mustek the lead story. The ICT small cap suffered the loss of its head office in the riots in KZN but has such strong operations that it seems to embody the spirit of South Africans - we survive, adapt, try to make light of horrible situations and keep moving forward.
There are also updates from Metair, Impala Platinum and property fund Attacq.
Adapt IT shareholders are reminded that you can join the conversation about the Huge vs. Volaris decision by clicking the banner image below. We are collating the questions asked in the forum and I'll try to address them tomorrow morning to the extent that I am able to. Obviously, my hands are tied from a regulatory perspective and I cannot give advice on what to do. I can only use my corporate finance experience to help you understand the alternatives.
Finally, make sure you don't fall behind on Magic Markets. We release a new episode every Thursday. You can find last week's episode here in which we discussed a variety of market-related topics.
Have a good day!
The Finance Ghost
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