Happy Friday!
There's a brand new ETF launching on the market and I think it's a goodie. The Satrix Global Balanced Fund of Funds ETF is a clever, low-cost way to get genuinely diversified exposure through a single investment. The fund IPO closes on Monday, so there's a small amount of time left to get in at the IPO price. It's a traded ETF of course, so you can always just buy it on the market when it launches soon.
To explain the concept of a balanced fund, the strategic asset allocation and the plumbing behind this product, Nico Katzke of Satrix joined me in a Ghost Stories episode. I highly recommend giving it a listen or reading the transcript>>>
To send us off into the weekend, there's also a brand new episode of The Trader's Handbook with IG Markets South Africa. In episode 11, it's all about why demo accounts are key to a smarter trading journey. Or, in simple terms, why it's important to make mistakes with Monopoly money before trying out the real thing. Find it here>>>
In company news, Mr Price really is the darling at the moment. I continue to scratch my head at the share price outperformance vs. sector peers, as Mr Price's comparable store growth hasn't been anything special at all. Instead, they've focused on winning market share through opening stores, essentially buying revenue through capex. Still, the market seems to love it!
For me, the more impressive numbers in the retail sector are coming out of Lewis. The latest period is especially strong, showing the value of consistently good execution as a market improves.
Spar is many things, but consistent isn't one of them. At least things are moving in the right direction though, especially on the balance sheet.
Moving on from retail to hospitality, we saw results at Southern Sun and a voluntary operational update from City Lodge. Comparing the pricing vs. occupancy strategies of these companies is fascinating.
Other earnings news on a busy day included Investec and Purple Group in financial services, as well as news from other sectors thanks to Crookes Brothers and Reunert. And in deal news, ADvTECH has made a strategic acquisition in Ethiopia.
These stories and the Nibbles are all available in Ghost Bites here>>>
If you are interested in the automotive sector, then the latest Magic Markets podcast is for you. We decided to do a whirlwind overview of the sector, focusing on recent performance at the big names in America, Europe and Japan. This episode is brought to you by Investec's The Current podcast series, bringing you insights into electric vehicle adoption along with other important energy topics. You'll find Episode 202 of Magic Markets at this link>>>
Finally, Friday means the latest from the team at DealMakers. There are updates on South African M&A, South African corporate finance and African deal activity. They've also published a piece on Q1 - Q3 M&A activity in Africa, along with articles on how SPACs offer opportunities on the continent and how local conditions are working out for private equity. There's also a piece on equity capital markets in South Africa.
Have a great day! |
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THE TRADER'S HANDBOOK: Why demo accounts are key to a smarter trading journey |
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| | In this episode of The Trader’s Handbook, Shaun Murison from IG Markets South Africa joined me to dive into the value of demo accounts for traders. A demo account provides a risk-free environment, allowing you to practice, learn, and test strategies without the pressure of real money on the line.
We discussed how to approach your demo account with discipline, treating it as if it were real money. Expect to experience losses, but understand that they’re part of the learning process – not a barrier to success. By being realistic about your demo experience, you can better prepare yourself for live trading.
The podcast and detailed transcript are available here>>> |
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SATRIX: Shari'ah-compliant Investing |
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| | The Satrix Global Balanced Fund of Funds ETF aims to provide local investors with optimally diversified exposure to a global basket of indices representing different asset classes.
This is a low-cost, easy way to invest in a mix of equities, bonds, infrastructure, property, credit and cash assets.
Nico Katzke joined me to explain the concept of a balanced fund, the strategic asset allocation in this ETF and how Satrix has managed to achieve this exposure at just 35 basis points a year in costs.
Along with a detailed transcript, you'll find it here>>> |
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DOMINIQUE OLIVIER: In loving memory of the internet |
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| | With bots on the rise, algorithms controlling what we see and machine-written content filling in the cracks, is there any space left on the internet for humanity? Find it here>>> |
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Ghost Bites - local company news: |
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Ghost Bites: The latest on ADvTECH, City Lodge, Crookes Brothers, Investec, Lewis, Mr Price, Purple, Reunert, Southern Sun, Spar and numerous Nibbles in Ghost Bites here>>> |
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Unlock the Stock - Calgro M3 |
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MAGAnomics: Trump and the global economy |
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International Business Snippet: |
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Intuit took a nasty knock of 5% in after-hours trading after releasing first quarter results. This is despite exceeding expectations for revenue and earnings for the quarter. The problem sits in revenue forecasts, with guidance for the second quarter that the market wasn't happy with.
Revenue is expected to decrease by single digits this quarter due to timing differences in TurboTax. The company reckons that it won't have any impact on the full financial year, but that didn't stop the market from throwing a little tantrum.
In case you aren't familiar with the group, Intuit is a really strong player in the business software space. They own Mailchimp and QuickBooks, among other systems.
Our latest research in Magic Markets Premium is on Disney. Recent box office success is encouraging, but does this mean they've finally turned the corner and gotten out of a creative rut that hurt the business? Subscribers find out this week. |
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Magic Markets: The automotive sector race |
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| | Magic Markets: Start your engines has quickly become start your batteries – or has it? Are electric vehicle adoption rates problematic everywhere, or are some companies seeing better adoption than others? Where does this leave hybrids? For a whirlwind overview of the automotive sector at the moment, you’re in the right place. Find it here>>> |
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IG Markets Morning Call: daily macroeconomic update |
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US equity benchmarks closed in positive territory again overnight, with the Nasdaq-100 lagging slightly in reaction to NVDIA results which presented a weaker earnings outlook for the upcoming quarter.
European index futures are slightly firmer, although Chinese equity markets are notably weaker on the day. Weakness in China follows softer corporate earnings and concerns over looming Trump import tariffs.
On balance we are expecting a slightly firmer start to the day for the JSE All-Share Index.
The dollar has continued to gain and Treasury Yields are trading marginally higher.
The rand is weaker against the greenback this morning.
Weaker Chinese markets are inciting demand concerns for base metals which are mostly lower today. Weakness in the asset class is being further fueled by dollar strength.
Gold has however managed to gain despite the firmer dollar, catalysed by escalating geopolitical tensions between Russia and the Ukraine.
Oil is flat on the day.
Traders will want to watch out for Services and Manufacturing PMI data out of Europe and the US today.
Key Indicators: USD/ZAR R18.15/$ | US 10yr 4.41% | Gold $2,685/oz | Platinum $960/oz | Brent Crude $73.85
The macroeconomic update is based on the morning call update by IG Markets |
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