| Good morning Voornaam, Guess what? We are one week closer to spring!
SENS is always quiet at this time of year. We find ourselves in a period where there aren't many earnings updates. To add to this, many of the big hitters are currently somewhere in Europe avoiding the South African winter, or at the very least in Umhlanga where they don't accept the existence of winter.
Still, there were a couple of stories yesterday. The first relates to the almost unanimous approval that Renergen shareholders gave the proposed deal with ASP Isotopes. The second relates to Southern Palladium releasing an optimised prefeasibility study, which gave me an opportunity to write about important concepts in capital budgeting and the timing of cash flows.
Get all the details you need on these updates (and a couple of Nibbles) in Ghost Bites at this link>>>
A quiet day on the markets is a good excuse to make time for the latest episode of Investec's No Ordinary Wednesday, in which Jeremy Maggs speaks to Cumesh Moodlier and Osagyefo Mazwai about how South Africa can get its growth story back on track after more than a decade in economic drift. Find it here>>>
Another very good use of your time would be to learn about the world of "hybrid capital" and how this works in the context of private equity deals in markets like the UK. Dino Zuccollo of Westbrooke joined us on Magic Markets to talk through the hunt for debt-like risk and equity-like returns, while filling us in on their exciting fundraising news in that market. This really is life at the sharp end of finance, with the podcast and transcript available here>>>
Kingsley Williams at Satrix brings you a piece on what they've learnt from 25 years of being a market pioneer. ETFs really are wonderful things and the first investment I ever made on the market was a Satrix Top 40 ETF all those years ago. There are some great insights on ETF trends in this piece>>>
To end off the week, DealMakers is here with the usual assortment of summaries of South African M&A, South African corporate finance and deals in the rest of Africa. There's also a piece on trends in South African financial services M&A.
Have a great Friday and we will see you on Sunday for Weekender! |
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| SATRIX: What 25 years as a market pioneer taught us about South African investing |
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| | | 25 years is a long time. Satrix pioneered the ETF market in South Africa and they've watched it go from strength to strength, with a broad offering of investment products to help South Africans get the equity exposure they are looking for at the lowest possible cost.
But what have they learnt over that period? And what are the recent trends in ETFs?
Enjoy this piece from Kingsley Williams at this link>>> |
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| GHOST WRAP: The JSE Winners' Club in 2025 |
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| | | At the halfway mark in 2025, we've lived through some huge geopolitical shifts. The world's gaze has shifted beyond just the US market.
Many investors choose to stick with what they know in times like these. This means homegrown favourites on the JSE.
But which stocks have been the big winners thus far this year, and what do they have in common?
Enjoy it here>>> |
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| PODCAST: Capital Markets in South Africa - the Think Big South Africa Competition |
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| PSG Financial Services is the proud sponsor of the Think Big South Africa competition, in collaboration with Economic Research Southern Africa (ERSA).
PSG wants to encourage South Africans to get involved in their country at the highest level, bringing forward policy ideas and constructive solutions to drive conversations and real change in our country. PSG CEO Francois Gouws joined me to explain why they are such strong supporters of this initiative.
Enjoy it here>>> |
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| GHOST BITES - Making sense of SENS on the local market |
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| | | Renergen shareholders have given a resounding yes to the ASP Isotopes deal. Southern Palladium has released an optimised prefeasibility study that shows improved returns and a lower peak funding requirement. Get the details in Ghost Bites>>> |
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| Unlock the Stock - Attacq |
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| In the 57th edition of Unlock the Stock, Attacq returned to the platform to talk through their recent numbers and strategy, including interesting trends in the property market across areas like retail and office space. The recording of the management presentation and interactive Q&A is available at this link>>> |
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| DOMINIQUE OLIVIER - Dumb luck: the Timothy Dexter story |
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| | | In a world obsessed with optimisation and five-year forecasts, there’s something deeply satisfying about success that arrives by mistake. And as mistakes go, Timothy Dexter was incredibly good at turning them into happy accidents. Dominique Olivier tells his story. Read it here>>> |
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| INVESTEC PODCAST: No Ordinary Wednesday - How South Africa can shift gears for growth |
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| | | South Africa has spent more than a decade in economic drift. So, how do we get back on track? In this episode of No Ordinary Wednesday, Jeremy Maggs is joined by Cumesh Moodliar, CEO of Investec South Africa, and Osagyefo Mazwai, Investment Strategist at Investec Wealth & Investment International, to unpack the hard truths, and outline a roadmap to recovery and long-term prosperity. Enjoy it here>>> |
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| International Business Snippet: |
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| Levi's shareholders have something to smile about today, with the share price up 6.8% in after-hours trading yesterday. This takes it back to June 2024 levels. Oh, and February 2022 levels. As you can see, the stock has been somewhat range bound.
The catalyst for this move was the raising of full-year guidance, helped along by only 1% of manufacturing being in China where the assumed tariff is 30%. They are also assuming a 10% tariff on the rest of the world in this guidance. As the tariffs change more often than the weather, nobody really knows how this will actually play out.
Levi's has also commented that they expect to be able to absorb some of the tariffs, so this really is a very brave (foolish?) move to update guidance in this environment.
In Magic Markets Premium this week, our subscribers got to enjoy our work on H&M. Although H&M has firmly played second fiddle to Zara owner Inditex, the valuation gap has opened up even more recently. Is this an opportunity to trade that gap, or are there reasons to justify it staying wide open? The entire research library in Magic Markets Premium is available for just R99/month. |
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| Magic Markets: Hybrid Capital - Best of Both Worlds (with Westbrooke) |
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| | | Westbrooke’s approach makes use of various funding mechanisms, with hybrid capital as a particular favourite. This aims for debt-like risk and equity-like returns, while providing capital for lower- to mid-market deals in markets like the UK.
Dino Zuccollo, Head of Investor Solutions at Westbrooke Alternative Asset Management, joined us on this episode to update us on the alternative asset market, recent deal trends across markets and the exciting news of the R3.8 billion WDO UK Fund II, raised by Westbrooke in partnership with RMB. Find it here>>> |
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| Macroeconomic indicators and macro update |
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| US and European futures are slipping from yesterday’s highs this morning, reflecting uncertainty after President Trump’s latest tariff announcements. He indicated that tariff letters to Canada and Europe would be sent “today or tomorrow” and hinted that countries not receiving a letter could face increased blanket tariffs of 15% or 20%, up from the current 10% rate.
In contrast, stocks in China and Hong Kong are rallying, hitting near-term highs led by gains in rare earth and technology sectors. This comes ahead of US-China discussions at the ASEAN Summit and amid expectations of additional policy support in the region.
The US dollar and Treasury yields have strengthened overnight, boosted by stronger-than-expected US jobs data. Despite the firmer dollar, gold prices have edged higher, likely benefitting from safe-haven demand amid renewed tariff concerns. Meanwhile, oil prices are down, reflecting worries about demand amid ongoing trade tensions.
The South African rand has weakened against the stronger dollar this morning, and the JSE All Share Index is expected to open cautiously.
This update is provided by Shaun Murison. Connect with him on LinkedIn here.
Key Indicators: USD/ZAR R17.79/$ | US 10yr 4.36% | Gold $3,338/oz | Platinum $1,422/oz | Brent Crude $69.06 |
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