There were some truly incredible market moves yesterday. I have to start with Aspen, a R100bn+ company that was thrown around by the market like a seal caught by a shark. Well, it used to be a R100bn+ company. The reward for Aspen "delivering its highest-ever 6-month normalised EBITDA in H2 2024" was the share price ending 13% down for the day. That's like handing in your school project three days early and getting an F anyway. Ouch.
Shoprite wasn't spared either, down 5.9% for the day after releasing results. Although revenue growth is still strong, it's not so easy anymore to convert that into exciting HEPS growth. This is a cautionary tale for how tough the Pick n Pay turnaround is going to be.
Motus also went through the market equivalent of stepping into the ring with Dricus, down 5.8% for the day as investors remembered just how much debt the company has. The strength of that share price remains a mystery to me.
Aside from those updates, we had the news of Pepkor buying the furniture business from Shoprite (a very interesting deal indeed), as well as numbers from AfroCentric and Ascendis.
It was a lovely day of news and you can get all of it right here in Ghost Bites>>>
The kind of volatility we are seeing this week is what traders live for. To spot the opportunities, traders tend to use technical analysis as a primary screening tool. IG Markets South Africa has made a terrific article available to us that focuses on the various types of technical indicators used by traders. I very strongly recommend that you read it at this link>>>
On the topic of fundamental research techniques, which are just as important as technical indicators in the market, the latest Ghost Stories podcast is a perfect way to learn more about how to research not just ETFs, but single stocks as well. Siyabulela Nomoyi of Satrix joined me for this show>>>
Have a great day - and don't forget to register for free to attend Unlock the Stock next week with CA Sales Holdings! |
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FEATURED: The Trader's Handbook Ep 5 |
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| | IG Markets Episode 5: Pairs trading offers a great opportunity to play one stock off against another, a strategy that means you can take short positions even in a more bullish market. Learn all about it at this link>>> |
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FEATURED: Mastering your portfolio with ETFs and single stocks |
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Ghost Stories: Doing your own research is a great concept and all, but how do you actually do it for both ETFs and single stocks? In this podcast with Siyabulela Nomoyi of Satrix, we dug into this topic. Find it here>>> |
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FEATURED: Cartels, Cement and Crocodiles - Yes, Crocodiles! |
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| | Dominique Olivier: They may be sparkly, but the illegal sand trade is a far bigger problem than the smuggling of diamonds. There is far more of a global shortage of sand than you may think, which means only one thing: an illicit market. Learn more here>>> |
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FEATURED: Is Quantum Computing the Next AI? |
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Magic Markets: AI has been all the rage in recent times. Coming up just as quickly is quantum computing, an exciting new technology that has some potentially incredible use cases. To lift the lid on this trend and to identify how to invest in it, international geopolitical strategist Dimitri Zabelin joined us. Find it here>>> |
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Ghost Bites: The latest on AfroCentric, Ascendis, Aspen, Motus, Pepkor and Shoprite, along with various Little Bites in Ghost Bites here>>> |
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| | Ghost Wrap: With thanks to Forvis Mazars, this podcast brings you the latest on Italtile, ADvTECH and STADIO as well as Harmony, all in just a few minutes in the Ghost Wrap podcast. |
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- Investec Podcast: As part of the Investec No Ordinary Wednesday series, you can enjoy Jeremy Maggs in conversation with Tinus Rautenbach, head of Investec's online platform Clarity, as they discuss the rise of self-directed investing. Find it here>>>
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- 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>>>
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- Magic Markets: How should you go about building a portfolio to meet a specific theme or objective? To explore the topic, Craig Antonie of AnBro joined us to discuss the portfolios that he has build. Find it here>>>
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International Business Snippet: |
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There can be no doubt that NVIDIA dropping by over 10% yesterday is the news that we need to focus on here. The fact that the share price is still up more than 120% this year is remarkable. As you'll inevitably see in the market, a sell-off in the market leader also triggers pain in other players in the sector, like Intel and AMD.
Hilariously, the VanEck Semiconductor ETF trades under the stock ticker $SMH - a great bit of internet lingo for Shaking My Head. I think that aptly describes how investors in the sector felt yesterday.
When a balloon is stretched to breaking point, it can take just the smallest amount of pressure to pop it. With ISM Manufacturing Index data coming in below expectations, it seems that the market panicked and took profit. This kind of volatility is what happens when a stock trades at incredibly high multiples.
This week, we are diving into Ulta Beauty on Magic Markets Premium. If you're keen to get the latest on the company, as well as access to our vast library of stock research notes based on our work in the markets and what we do with our own money, then take out a subscription for just R99/month. Thank me later. |
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IG Morning Call: daily macroeconomic update |
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US equity markets closed lower overnight, led by weakness in technology stocks. High valuations in AI counters are being met with some angst around near-term highs. We are seeing European and Asian markets trading lower this morning as well, so we expect a softer start for the JSE All-Share Index.
The dollar is holding firm in risk-off trade, while emerging market assets such as the rand are on the back foot.
Gold is hovering around the lower end of its short-term range between levels $2,485/oz and $2,530/oz.
Oil prices are trading significantly lower as political disruptions to Libyan supply meet demand concerns in the broader market.
Traders will want to watch out for US JOLTS job openings data out later this afternoon.
Key Indicators: USD/ZAR R18.00/$ | US 10yr 3.82% | Gold $2,492/oz | Platinum $908/oz | Brent Crude $73.30
The macroeconomic update is based on IG's morning call update |
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