| Good morning Voornaam, Welcome back after a long weekend! Unless you're a Ferrari supporter, it was a goodie. If you are a Ferrari supporter, by now you're so experienced at dealing with disappointment that the double disqualification probably bounced right off you anyway.
Formula 1 is all about momentum and so was the JSE on Thursday, with Momentum closing 11% higher after releasing interim results. It was one of those periods where just about everything went right for them. The share price is still trading at quite a discount to the embedded value per share, suggesting that the market is nervous of how maintainable these earnings are.
Also in financial services, Investec released a pre-close update that shows the negative impact that impairments can have on a bank. Pre-provision operating profit put in some solid growth, but provisions (impairments) then dragged them down. This was the case in the UK in particular.
Sticking with the UK, property group Shaftesbury is selling down its stake in Covent Garden and allowing a minority shareholder onto the register. It's quite a smart deal actually, as they are getting paid a solid price and they will still earn management fees from the property as a whole.
To finish off an interesting day, Choppies released solid earnings and South Ocean Holdings told the market about the terrible time it faced in 2024.
Along with the director dealings and a few Nibbles, you'll find those details in Ghost Bites at this link>>>
The latest Magic Markets podcast takes a deeper look at the European markets and the companies that you'll find in those indices. Much as everyone is now talking about opportunities outside of the US, one needs to be cautious of this Europhoria. The companies in the indices aren't necessarily the most exciting names around. Learn more here>>>
Here's another opportunity to learn about the state of play out there: Investec's No Ordinary Wednesday brings you a discussion between host Jeremy Maggs and Investec's Chief Economists, Phil Shaw in the UK and Annabel Bishop in SA. The focus is on the economic outlook for Europe and South Africa. Enjoy it at this link>>>
Finally, the latest Ghost Wrap podcast (brought to you by Forvis Mazars in South Africa) looks at the winners on the JSE for the first quarter of the year. Despite all the noise, there have certainly been ways to make money! Get it here>>>
Have a great start to your week. |
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| SATRIX: Don't waste the TFSA opportunity |
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| | | Tax-free savings accounts (TFSA) are one of the most building blocks in any equity portfolio. The advantage of compounding tax-free returns over a long period is incredibly powerful and can really turbocharge a long-term wealth creation journey.
To discuss the importance of TFSA investments and the opportunities available to investors in the ETF universe, familiar voice Siyabulela Nomoyi of Satrix returned to the Ghost Stories podcast.
Enjoy it here>>> |
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| GHOST WRAP: Q1 winners on the JSE |
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| In considering how the first few months of the year have played out, some surprising winners have emerged. The performance in gold is simply a case of the sector carrying on where it left off in 2024, but what about platinum? And where did that telecoms rally come from? Also, have retail stocks continued their slide since the previous episode of Ghost Wrap that focused on that issue?
You can find the recording and the transcript (with charts) at this link>>> |
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| GHOST BITES - Making sense of SENS on the local market |
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| | | Momentum had a great time in 2024. Investec's impairments have been a source of pressure. Shaftesbury is selling part of its stake in Covent Garden. Look out for Choppies and South Ocean Holdings as well. Get the details in Ghost Bites>>> |
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| Unlock the Stock - Afrimat |
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| In the 48th edition of Unlock the Stock, popular JSE mid-cap Afrimat returned to the platform for a management presentation and interactive Q&A with attendees of the webinar. The recording is available at this link>>> |
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| DOMINIQUE OLIVIER - Temu Teslas no more: how China won the EV race |
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| | | In case you've been living under a rock, the Chinese vehicle onslaught is causing massive disruption in the automotive sector. It's even more severe in the EV world, something we aren't exposed to in South Africa. Dominique Olivier explains how China did it. Read it here>>> |
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| INVESTEC PODCAST: Global economy - recession or recovery? |
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| | | Recession risks, inflation pressures, and trade tensions - how is the global economy shaping up in 2025? Investec’s Chief Economists, Phil Shaw (UK) and Annabel Bishop (SA), take stock of the latest trends in No Ordinary Wednesday. From global growth forecasts to the economic outlook for Europe and South Africa, they break down what lies ahead in this podcast>>> |
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| International Business Snippet: |
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| FedEx had a rough day on Friday, dropping 6.5% after releasing full-year forecasts that the market didn't appreciate. Although tariffs obviously cracked a mention in the discussions and certainly in the questions from analysts, there were broader concerns around demand in the US industrial economy. Business-to-business services offer better margins than retail eCommerce, so that's the area that FedEx really needs to grow. This is arguably where the tariff risks are the highest.
FedEx is down 18.5% over 12 months and United Parcel Service is down 26.5%, so the immense competition in this space is hurting both of them.
In our most recent Magic Markets Premium show, we covered UK financial services group Lloyds Banking. This is old-school banking focused on traditional lending services, now delivering with a digital twist based on the recent focus at that group. This is part of our efforts to show you more companies and risk-reward setups outside of the US. Our subscribers can enjoy our detailed work on this stock. |
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| Magic Markets: The art of investing in art |
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| | | Magic Markets: Tristanne Farrell isn’t shy to admit it: she’s mildly obsessed with art. As a Senior Wealth Manager at Investec Wealth & Investment International, her day job is to help clients build diversified, successful portfolios. Thankfully, with art as one of the more interesting (and certainly most visually stimulating) alternative assets out there, she gets to enjoy some overlap between her passion and her career, including hosting the Art in Focus podcast series.
She joined us to talk about art as an investment, bringing a mix of genuine passion and solid insights into this asset class. To learn more, listen to this podcast>>> |
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| Macroeconomic indicators and IG Markets macro update |
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| The new week sees global markets trying to balance optimism and apprehension, largely dictated by US President Donald Trump's evolving stance on tariffs. After a period defined by assertive trade measures impacting China, Mexico, and Canada, Trump's recent indication of potential flexibility regarding upcoming tariffs is offering some calm. However, this shift in tone is being met with cautious scepticism.
Asia-Pacific markets are trading mixed as investors continued to assess the implications of the looming April 2 tariff deadline imposed by the US. In contrast, European markets are expected to open in positive territory, highlighting a cautious optimism. On Friday, Wall Street saw modest gains, with key US indices edging higher.
The rand is tracking sideways this morning and we are expecting a muted open for the JSE All-Share Index today as well.
In commodity markets, gold prices are slightly lower this morning on the back of a firmer dollar. Meanwhile, oil prices are flat as markets assess ongoing ceasefire negotiations between Russia and the Ukraine.
Key Indicators: USD/ZAR R18.18/$ | US 10yr 4.28% | Gold $3,023/oz | Platinum $981/oz | Brent Crude $72.15
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. |
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