No rainbows at RCL

Good Morning Voornaam,

Jaltech has released South Africa's largest Alternative Investment Report and will be hosting a webinar to share its findings and insights from over 1,300 investors and financial advisors. Click here to register and learn about these investments.

Do you have kids? Do you care about their financial futures? The answer to the second question should always be "yes" if you do have kids, so take the opportunity to learn from Thembeka Khumalo at Satrix about how to invest for your children. Kicking off National Savings Month in the right way, this episode of Ghost Stories is so important. Find it here>>>

Covering eight companies in under eight minutes, the Ghost Wrap podcast brings you the latest news and my opinions on AECI, Argent Industrial, Hudaco, PBT Group, Invicta, Hyprop, Advanced Health and the Naspers/Prosus stable. Ghost Wrap is made possible by the support of Mazars. Find it here>>>

And remember, if you want to learn how to Do Your Own Research (DYOR), then the latest episode of Magic Markets is for you. We talked about some of the techniques used in fundamental and technical analysis. Listen to it here>>>

Thanks for nothing, Tongaat

Tongaat-Hulett can't just suffer alone. No, the entire sugar industry has to suffer with it, thanks to the way that the industry works and the need for sugar levies. The South African Sugar Association (SASA) raised a special levy because the business rescue practitioners at Tongaat Hulett are not paying the company's statutory obligations in this regard. The impact on RCL Foods is a whopping R234 million.

The only sweet outcome here is for the lawyers, as litigation is underway regarding the lawfulness of the decision by the business rescue practitioners. In the meantime, the rest of the industry is suffering.

For this reason and a few others, RCL Foods expects HEPS for the year ended June 2023 to be at least 30% lower than the corresponding period. The share price literally shrugged this news off, so institutional holders clearly knew this was coming.

Yesterday also saw the release of very encouraging metallurgical results from Copper 360, as well as (more) bad news for Murray & Roberts in Australia. Sometimes I think there should just be a moratorium on South African businesses trying to do anything in Australia at all, as the success rate is awful.

Get all the details in Ghost Bites>>>

Little to report from Independence Day

The US market was out of action yesterday as they celebrated Independence Day. With such little liquidity in the market, the rand strengthened to R18.61 against the dollar. TreasuryONE expects volatility to ramp up towards the end of the week, with the US non-farm payroll number looming on Friday.

Looking at oil, supply cuts in Saudi Arabia and Russia added to the calls that a recession is on the horizon, with the data needing to be watched closely to confirm or deny this.

Have a great Wednesday!

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.
Whilst every care is taken, we accept no responsibility or liability for any errors or omissions in any of our content.
The views, thoughts and opinions expressed in our content belong solely to the author or quoted individuals and/or entities, and not necessarily to the author's employer, organisation, committee or other group or individual, or any of our affiliates or brand partners.