| Good morning Voornaam, The market hates uncertainty and nasty surprises. Sadly, Barloworld dished out both of those things on Friday, with a cryptic announcement about a voluntary self-disclosure to the US Department of Commerce, Bureau of Industry and Security regarding potential export control violations regarding the sale of certain goods to the Russian subsidiary. Yikes. The market hit the sell button at pace, with the share price eventually closing 12.5% lower for the day.
The rest of the day's news was far more tame, although there was some interesting stuff in there. Choppies is getting rid of a loss-making subsidiary. Kore Potash released its annual report and indicated that the EPC contract is really close to being finalised. MTN released the circular with all the details on the extension of the B-BBEE deal - including the fortune being made by advisors. Over at Nampak, they need to incentivise the new management team at the share price that was relevant when they first joined the business.
Get it all in Ghost Bites, your one-click SENS summary at this link>>>
Sticking with the local theme, be sure to register to attend Unlock the Stock this Thursday if you are interested in learning more about Lesaka and the fintech platform they are building. This is a terrific opportunity to engage directly with management and pose your questions. Attendance is free! Register here>>>
In the latest nugget for all the budding traders out there (and the experienced ones who enjoy a refresher), IG Markets South Africa has shared a piece with us that focuses on the Average True Range indicator. This is a way to measure the dgree of price movement, making it a key component in risk management strategies for traders. You'll find the article here>>>
Finally, Dominique Olivier's latest piece is a fantastic look at the growth in the pet industry and how Millennials seem to be favouring cats and dogs over more kids at the moment. There are a lot of good reasons why this is happening. Join her in looking into a furry crystal ball and seeing the family photos of the future in this article>>>
You still have the opportunity to refer five friends to Ghost Mail to stand a chance to win 2x tickets to the Springboks - Argentina game this weekend! Made possible by my Ghost Mail partners, you can find the referral link here.
Have an excellent Monday. |
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| FEATURED: The Trader's Handbook Ep 6 |
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| | | IG Markets Episode 6: Traders have a variety of important trading signals and indicators that they look at to understand market trends and predict where things are going. Learn all about it at this link>>> |
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| FEATURED: How to Build a Bull Case |
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| Magic Markets: The art and science of investing requires critical thinking and being able to make arguments for and against an investment. In this terrific episode, we run through the way to build a bull case when analysing a company. Enjoy it here>>> |
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| FEATURED: A responsible investing roadmap |
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| Investec Wealth & Investment International has launched a comprehensive guidebook on responsible investing. In the latest episode of the No Ordinary Wednesday, Jeremy Maggs speaks to the authors, Boipelo Rabothata and Maxine Gray. Enjoy it here>>> |
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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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| Add these to your playlist: |
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| Ghost Wrap: In this fast-paced podcast, I covered CA Sales Holdings, RCL Foods + Rainbow Chicken, Motus and Bidvest. Made possible by the support of Forvis Mazars, you can find it here>>> |
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| Magic Markets: Comparing India to China is fascinating at the moment, with the former going from strength to strength and the latter losing its shine - for now, at least. To understand some of the structural differences between these critical emerging markets, listen to this show>>> |
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| Ghost Bites - local company news: |
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| Ghost Bites: The latest on Barloworld, Choppies, Kore Potash, MTN and Nampak along with various Nibbles in Ghost Bites here>>> |
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| Dominique Olivier: Like looking into a furry crystal ball |
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| Dominique Olivier: The global pet sector is set to boom by 2030 – and if we peer carefully beneath its furry surface, we are being given a few clues about what the family photos of the future will look like. Read more>>> |
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| International Business Snippet: |
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| Two lawmakers in the US have introduced legislation that seeks to implement federal regulations on sports betting. This has become a huge industry, with sport as the most valuable content in the world and sports betting businesses only too happy to monetise the connection that we have with sport. Some of the suggested elements of the regulation include limitations on the number of deposits in a 24-hour period, as well as putting the onus on gambling operators to consider the affordability for those placing large bets.
Another potential source of regulatory change in the US is around the de minimis rule for packages under $800 to avoid import duties. For the likes of Shein and Temu, this is a huge advantage over American products that would be impacted if changes are made to that rule.
Along with all the discussions around potential tariffs on Chinese vehicles at the moment, the West seems to be spending a lot of time figuring out how to compete with China. Of course, this is the industrial powerhouse that they helped build!
Our latest research in Magic Markets Premium is on Dollar Tree. The company is in trouble, with my partner in Magic Markets, Mohammed Nalla, describing it to me as "one of the ugliest charts you'll see" - and the reasons why are a great learning opportunity for our subscribers this week. |
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| IG Morning Call: daily macroeconomic update |
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| Global equity markets are trading flat this morning ahead of a busy week in terms of central bank activity. The Bank of England, Federal Reserve, South African Reserve Bank and Bank of Japan all conclude monetary policy meetings this week, and will announce changes (if any) to key lending rates.
The JSE All-Share Index is in turn expected to open flat in line with its international peers.
The dollar has softened as the probability of a 50 basis point cut to US lending rates has increased now to 59%. The rand has firmed against the softer greenback.
The softer dollar has helped gold extend further into new high territory.
Oil prices are tracking sideways this morning.
There is no high impact economic data scheduled for today.
Key Indicators: USD/ZAR R17.68/$ | US 10yr 3.65% | Gold $2,589/oz | Platinum $1,003/oz | Brent Crude $71.40
The macroeconomic update is based on IG's morning call update |
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