| The JSE rallied more than 9% last week, reclaiming all of the previous week's losses as global equity market rose ahead of the weekend's announcement by media outlets that Democrat Joe Biden would become the next president of the US. While that still has to be confirmed by the courts, and President Donald Trump has made all manner of legal threats, markets moved ahead in anticipation. Reuters attributes it to the prospect of policy gridlock in Washington if the Republicans retain control of the Senate, easing worries that a Biden administration might tighten regulations on US companies. The S&P 500 gained more than 7% over the course of the past five trading days, the biggest weekly gain since April. Supporting the JSE's gains, Richemont ralled 11% after announcing a tie-up with Alibaba and online luxury fashion e-tailer Farfetch as they target rich Chinese consumers with luxury goods. The announcement coincided with half-year results from Richemont, which were cushioned by sales in China. Motus also rose strongly after releasing a business update that hinted at the possibility of a first-half profit. And Pan African Resources jumped after saying it was mulling a new large-scale tailings retreatment operations, similar to its Elikhulu operation at Evander in Mpumlanga. Also today, Pepkor says it's grown its share of the value clothing market and Argent Industrial has reported a strong first-half thanks to its offshore operations. Finally, Today's Trustee considers the quandary trustees face as they make the best decisions for pension fund members in an environment where the economy desperately needs investment in infrastructure. I hope you have a good day. Stephen Gunnion Managing Editor, InceConnect
The latest from Ingham Analytics Ingham Analytics have issued a note on Alibaba entitled "White-Anted" which deals with the nixing of the proposed Ant Group listing and the implications. They point out it is no bad thing as Ant has become an outsized quasi-bank but without the regulatory oversight or capital requirements other financial institutions have in China. They also give an update on earnings potential and where fair value lies. Alibaba at the right price is a worthy alternative to overpriced Amazon. | 