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Good morning Voornaam,

Yesterday was rather fun in the markets. I bought the dip in Meta, Microsoft and Uber, all based on previous research done on these companies in Magic Markets Premium that gave me a strong sense of why I like them. Timing was everything yesterday, as the US markets got off to a potent start. Thankfully, I got in there quickly. These are long-term holds for me, but why not try get them a bit cheaper?

In my IG Markets South Africa demo account, I attempted to trade the open. Though I have very little experience in that style in the markets, I recognise that yesterday was a pretty easy day to do it. I was successful with my Monopoly Money but I've been in the markets enough in general to know that it was a lucky afternoon. For those wanting to learn about trading, my podcast series with IG Markets South Africa is great. The latest episode is available here>>>

Local company news saw strong support for the rights offer at Pick n Pay, as well as a great first quarter for Telkom. Be warned, you shouldn't extrapolate that for the full year. I've also covered the tough results for Mpact, along with MTN Uganda as MTN's shining star in Africa. Copper 360 also features, along with the Little Bites. Enjoy Ghost Bites here>>>

Speaking of MTN, the latest Ghost Wrap podcast gave me an excuse to compare the recent numbers from Nigeria, Ghana and Uganda. I also looked at ArcelorMittal as an example of extreme operating leverage, as well as Curro as a less severe but still interesting example. Thanks to Forvis Mazars, you can enjoy the podcast here>>>

Today's other new piece is from Satrix, giving us a reminder of the performance for the first half of 2024 as the build-up to the market having a seriously wobbly yesterday. Context to a period is always so important. Read it here>>>

And for those looking for a break from the markets, Dominique Olivier wrote an excellent piece on first mover disadvantage and what this actually means, with ChatGPT as a perfect recent example. Read it here>>>

Have a great Tuesday!

FEATURED: Investec Structured Products new product applications close on 8 August

Investec Structured Products: Applications for the Nikkei 225 Autocall and Euro Stoxx 50 Autocall close on 8 August. Don't miss the opportunity to learn about these offshore investment opportunities.

FEATURED: The Trader's Handbook Ep 3

IG Markets Episode 3: For a review of the trades in my demo account and a discussion on how to choose the right brokerage, I was joined as usual by Shaun Murison of IG Markets South Africa. Learn about trading at this link>>>

FEATURED: Ghost Wrap

Ghost Wrap: With thanks to Forvis Mazars the latest on MTN's African subsidiaries, ArcelorMittal and Curro, all in just a few minutes in the Ghost Wrap podcast.

FEATURED: ChatGPT and first mover disadvantage

Dominique Olivier: Going first isn't always the best move in business. The benefit of hindsight is wonderful, even if we are talking about someone else's hindsight. ChatGPT is just the latest example of what looks increasingly like first mover disadvantage. Learn more here>>>

Local company news:

Ghost Bites: Get the latest on Copper 360, Mpact, MTN Uganda, Pick n Pay and Telkom, along with various Little Bites in Ghost Bites here>>>

Unlock the Stock: In a session with a different format to the norm, Keillen Ndlovu joined us to present his institutional-quality research on the REIT sector, followed by a vibrant Q&A. Brought to you by the SA REIT Association, you can watch the recording here>>>

Podcasts:

Nico Katzke of Satrix: The GNU has driven significant optimism around the South African market. To help us understand where this is playing out and how the carry trade protects the rand, Nico Katzke joined me on Ghost Stories. Find it here>>>

Magic Markets: Is the automotive sector a good investment? Using examples like Ford, GM, Toyota and BMW, we set out to answer that question in the latest episode of Magic Markets. Find it here>>>

Investec No Ordinary Wednesday podcast: The market may be unpredictable, but your investment strategy doesn’t have to be. Investec Investment Management experts share their insights on what approaches are winning, common mistakes investors make, and why staying the course is important. Enjoy it here>>>

International Business Snippet:

Palantir is named after the "seeing stones" in Lord of the Rings. We all wish we had one of those crystal balls for the markets, especially last night when Palantir ended 12% higher after releasing results.

The company focuses on government work and major AI projects, with government revenue generating slightly more than half of total revenue for the quarter. The "bootcamp" strategy to win corporate business is working beautifully as well, contributing to group revenue growth of 27% year-on-year.

We've covered Palantir before in Magic Markets Premium, along with loads of other global companies. For subscribers to Magic Markets Premium, the investment of R99/month is the best investment they can make.

IG Morning Call: daily macroeconomic update

Better than expected services PMI data appears to have prompted a rebound from oversold territory in major US benchmarks. The data pointed to industry expansion where a contraction was consensus.

European and Asian equity markets are notably firmer this morning as well, with Japan’s Nikkei leading the charge, up more than 10% from yesterday’s lows.

Markets today appear to be ignoring the possible dollar yen carry trade unwind which induced fear just yesterday.

The dollar has now started recover against the yen. The rand is marginally firmer against the dollar this morning as risk appetite improves.

The JSE All-Share Index is expected to open firmer, taking its lead from its global index peers.

Oil and gold prices have rebounded off yesterday’s lows as well following today’s buoyant market sentiment.

There is no high-impact economic data scheduled for today.

Key Indicators: USD/ZAR R18.48/$ | US 10yr 3.85% | Gold $2,408/oz | Platinum $916/oz | Brent Crude $77.24

The macroeconomic update is based on IG's morning call update