Yesterday, I shared an image of the Barloworld share price chart that looked like the profile of Table Mountain. Another tough day on the market for the stock helped answer the question of where the share price was headed, with a 9.4% drop to add to the prior day's pain. The share price is down nearly 20% in the past week, so the Table Mountain chart is pointing firmly towards the Sea Point Promenade. Here it is again, updated with the latest move:
In global news, KPMG has been fined GBP3.3 million over its audit of Rolls-Royce a decade ago. I guess they were guilty of Phantom ticking. Petrolhead jokes aside, the Rolls-Royce car business was sold to BMW all the way back in 1998. Rolls-Royce as a listed company is an aerospace and electrical systems busine ss that also manufactures jet engines. There's your fun fact for the day.
It's been interesting to keep an eye on the rand lately, with Wichard Cilliers (Head of Market Risk at TreasuryONE) making it simple for us on a daily basis:
"The rand traded almost in a carbon copy to the previous day, starting the day off in the R15.80s before slowly but surely trading all the way back to R15.65 as we reached the end of the day. The rand has been swept along by a weaker US dollar as most emerging markets currencies caught the wave of dollar weakness and are trading stronger against the US dollar. The fact that the rand has failed to break the R15.62 level again like only reinforces the view that the rand could find running significantly lower a bit difficult.
The US dollar has again lost some ground against the euro, with the greenback trading at 1.0735 against the euro. With the US Fed minutes coming up, we could see a volatile shift in the US dollar should the minutes point towards any more aggressive hikes. Risk sentiment seems to be skewed towards the negative side of the market, with US equity markets under severe pressure."
TreasuryONE has written a helpful piece on the positives that the rand is currently clinging to. You'll find the link in the list of articles below.
There's also a feature article today on Datatec, a JSE-listed international technology company that has engaged investment bankers to undertake a strategic review of the group. When bankers are asked for an opinion, the opinion is usually that deals should be done (the kind that pay fees). With an exceptionally high backlog for tech hardware, the ICT industry continues to post strong profits.
Be sure to read Ghost Bites today as well for all the important snippets from the JSE. I would also like to point you towards the DealMakers AFRICA Q1 analysis as well as an article on M&A trends in the indus try by Warrick Haskell, a Senior Associate at Nedbank.
If you are interested in crypto mining, you should also read the sponsored article by Karbonyte on their blockchain technology and related deals on crypto mining hardware. Though I'm certainly no expert, I do find it interesting to see how they structure these deals.
Finally, stay up to date with the latest Magic Markets podcast on the private equity industry in the UK, as we tapped into the insights of Rob Grieve from Westbrooke Alternative Asset Management.
Don't forget to register for Unlock the Stock on Thursday at 12pm with the management team from Calgro M3. You'll get the chance to ask questions directly to the executives, a rare opportunity for retail investors. Attendance is free but you need to register at this link.
Have a great day!
