| Investors appear ready to take more risk as reports emerge that a Covid-19 vaccine could be closer and as more countries start to reopen their economies. That has sent equity prices higher, while supporting emerging market currencies like the rand. However, companies continue to play it safe, holding back on dividend payouts just in case. Logistics group Santova is the latest to conserve its cash due to the uncertain environment at the moment. Although it had a decent year last year, it will be directly impacted by the slowdown in movement of goods across the globe. Still, its shares rose nicely on the back of its full-year results. Rhodes Food Group also delivered its latest numbers yesterday. It benefitted from the rush by South Africans to fill their pantries ahead of the lockdown but overall profit was down due to foreign exchange losses in the first half of its financial year. Also today, Richemont has taken advantage of low euro-area interest rates to sell bonds and strengthen its buffer against Covid-19 and Jubilee Metals is going ahead with the relocation of its fine chrome recovery plant in a move it says will boost its earnings. Finally, in the intriguingly titled "Poseidon and the other banking gods", top trader Andrew Kinsey asks what the fate is for banks, not just in South Africa but around the world. Poseidon is an appropriate figure of speech as the mythological god was grumpy and powerful - and these are grumpy Covid-19 times, with powerful banks perhaps not as invulnerable this time as they imagined. If there was ever a time for executives to earn their money it is now. There will be casualties. This note examines banks that are representative of South Africa, US and Britain. Only one bank is likely to emerge stronger - and that is a US bank. A good pair trade is identified too. Have a good day and take care. Stephen Gunnion Managing Editor, InceConnect
Take a look at the latest Insights and sector reports From Ingham Analytics. The Trader note "Iron ore and steel defies COVID-19 macro gloom" issued last Thursday has been a profitable call with BHP up 12% and Kumba up 16%. Ingham Analytics explains why they could see trading opportunity in the Covid-19 tumult, analysing what's happening with steel demand in China, iron ore shipments and freight rates, recently affected by lower oil prices. What happens in China impacts the miners. | 