Local company news:


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It was a day of property and mining updates on the JSE, with an update from Super Group (showing difficulties in the UK Dealerships segment) thrown in for good measure.

On the property side, we saw NEPI Rockcastle announce record distributable earnings per share. To add to the positive sentiment in the sector, Vukile was able to increase the intended capital raise due to demand and placed R1 billion of new equity at a modest discount to the current price.

Just be careful in assuming that this good news applies to the entire sector. In volatile times, it really is all about location, location, location - and especially when that location is in a high growth market that has electricity. In other words, not a Joburg office block.

Moving onto mining, BHP's numbers are particularly interesting in that they show just how lucrative the iron ore side of the business is when compared to copper and coal. They also show how expensive mistakes can be, ranging from the impairment of the lithium mine in Australia through to a larger provision for the terrible Samarco dam disaster that is still in the courts.

At Kumba Iron Ore, the lack of infrastructural support (yes, Transnet) has led to a drop in production expectations for the next few years. In turn, this leads to job losses. It's a very sad day indeed, despite the company pulling off strong results in 2023. 

Get all the details in Ghost Bites here>>>

For an efficient and insightful update on local news, the Ghost Wrap podcast should be a staple on your favourite podcast player. Made possible by Mazars, the latest episode needs just 6 minutes of your time to update you on Sasol, ArcelorMittal, Sappi, Curro and British American Tobacco. Get it here>>>

Currencies, commodities and rates: TreasuryONE Market Update

Naturally, all eyes today will be on the budget. Our government is grappling with unsustainably high debt levels and we need urgent fiscal reform. A deeper look suggests that debt-to-GDP ratios could potentially reach the mid-80s in the medium-term. To fix this, a significant ideological shift towards full privatisation of SOEs is needed, encouraging economic growth and raising tax revenue.

If the budget is worse than expected, the rand could come under pressure. We also have the release of FOMC minutes later tonight, so it's a big day for our currency. The rand has begun the day at around R18.90, assisted by a five-day losing stream for the dollar and a dip in US Treasury yields.

To get the post-budget insights you need, join the TreasuryONE team on Thursday morning as they are joined by special guests from ETM Analytics, Econometrix and the Centre for African Diplomacy at UJ. You can register for this event here>>>

Other key indicators: US 10-year 4.27%; Gold $2,030; Platinum ZAR R17,070; Brent Crude $82.63

International company news:


Home Depot is one of those typical, dependable blue chip stocks that just gets the job done. This doesn't make it immune to the pressures in the home building market, something we've seen play out to an even greater extent in South Africa. In the latest quarter, revenue fell 3% year-on-year, but the company beat Wall Street's earnings and revenue expectations. 

They aren't exactly expecting fireworks in 2024, with sales expected to grow just 1% - and that's in a year with an additional trading week. If this is the case in the US, you can imagine how tough it might get for the likes of Cashbuild and Italtile in South Africa. A high interest rate environment really hurts this sector.

Have a great day and enjoy the rest of today's Ghost Mail!