| Good morning Voornaam, The first 100 days in office are considered important for presidents and CEOs alike. In just over 3 months, the expectation is that enough information has been gathered to justify an update. It's pretty rare to see a public update like this in practice in the market, with Prosus-Naspers CEO Fabricio Bloisi continuing to impress me with his candid approach. I enjoyed his 100-days letter and I've covered it in Ghost Bites.
In deal news, Capital & Regional has released the circular for the NewRiver deal. This includes details on the challenges for South African shareholders who would've liked to receive shares in NewRiver. Other corporate activity includes a potential delisting of highly illiquid group Workforce Holdings, with one of the smallest eligible voting pools for a scheme of arrangement that I've ever seen.
Those who are interested in the technology space will enjoy the latest earnings at 4Sight. Also look out for mining sector updates from BHP and South32, along with the usual assortment of director dealings and smaller news items in the Nibbles. All of this is available in Ghost Bites here>>>
In case you missed it yesterday, I'm sharing this brave piece of analysis again: IG Markets South Africa putting forward their views on what the impact on markets could be if Kamala Harris wins. They will no doubt share their views on a Donald Trump victory soon! Give it a read here>>>
I thouroughly enjoyed the recent Ghost Stories podcast with Nico Katzke of Satrix, in which we talked about factor investing and whether it actually works. If you think ETFs are plain vanilla, then get ready for the version with loads of colourful sprinkles. Learn about factor investing here>>>
Have a great day! |
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| FEATURED: The Investec Rand India Accelerator |
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| | | The Investec Rand India Accelerator offers geared exposure to growth in the iShares MSCI India ETF over the 3.6-year term. The ETF tracks the large and midcap Indian market, covering 85% of the India equity universe. Listed on the JSE, it offers 1.5x geared exposure to the ETF capped at 40%, for a maximum return of 60% in Rands. In addition, the Accelerator provides a high degree of capital protection.
To explain the opportunities and risks of this product, Brian McMillan of Investec Structured Products joined me on this podcast. |
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| FEATURED: The Trader's Handbook Ep 8 |
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| | | IG Markets Episode 8: In Episode 8 of The Trader’s Handbook, learn why indices are an attractive option for traders, providing broad market exposure, lower risk compared to single stocks and significant cost advantages. We also discussed practical tips on technical indicators such as RSI and stochastic oscillators. Enjoy it here>>> |
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| FEATURED: Does factor investing work? |
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| Satrix: Factor investing takes ETFs to the next level. Instead of tracking a stock index (like the JSE Top 40), these ETFs have a set of rules based on investment fundamentals like valuation multiples or even levels of debt. The sky is the limit with the creativity that goes into these factors, but do they actually work?
To unpack these types of ETFs and the thinking behind them, Nico Katzke of Satrix joined me for an insightful discussion. Find it here>>> |
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| Dominique Olivier: When customer concepts meet big brand money, is it a winning recipe? Do brands benefit from involving their customers in their product design ideas? Lego and PepsiCo are just two examples of this in practice. Learn more here>>> |
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| Unlock the Stock: Lesaka Technologies |
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| | | Unlock the Stock: Watch the recording of the management presentation by the Lesaka Technologies team, along with the vibrant Q&A session on Unlock the Stock. Find it here>>> |
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| Ghost Bites - local company news: |
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| Ghost Bites: The latest on BHP, Capital & Regional - Growthpoint, 4Sight, Prosus/Naspers, South32, Workforce Holdings and numerous Nibbles in Ghost Bites here>>> |
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| Investec podcast: responsible investing |
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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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| International Business Snippet: |
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| Hyundai Motor India achieved a $3.3 billion IPO in the Indian market, the largest ever raised in that exciting emerging market. The IPO was oversubscribed by two times, so the market is clearly cooking at the moment and that's obviously something to be cautious of. Analysts are talking about a record-breaking year for Indian IPOs. Although being blind to the warning signs of a bubbly market usually ends badly, this is an exciting growth story and we can only wish for this level of activity in South Africa.
Over at Disney, the group plans to name a successor to CEO Bob Iger in early 2026, so he has two more years to try and improve things at the group. The four executives reporting directly into Iger have been part of the recent interview process. This shows you how much thought goes into the decision - and yet companies still get it wrong on a regular basis. It just shows how unpredictable people are!
Our latest research in Magic Markets Premium is on Stellantis. This is a great example of a stock that we were correctly bearish on, with the automotive group suffering immense competition and the outcome of its own bad decisions. Are things improving yet? You'll find out in the latest report for our subscribers this week. |
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| Magic Markets: GNU follow-through - are businesses changing? |
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| | | Magic Markets: GNU-phoria in South Africa is now a few months old. Loadshedding is becoming a distant memory. Sentiment has clearly turned positive, but is this making a difference in day-to-day business decisions around capital allocation decisions? Dino Zuccollo and Jonti Osher of Westbrooke joined us for this important discussion. Find it here>>> |
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| IG Markets Morning Call: daily macroeconomic update |
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| As we head closer to US elections, we are seeing more strength in the US dollar and 10 year Treasury Yields at their highest level in three months. The moves appear to be tracking the ‘Trump trade’ as the former president gains in the polls.
Equity markets closed mostly lower overnight and US and European index futures are suggesting a marginally softer start to the day. The JSE All-Share Index is expected to follow suit with a slightly lower open this morning.
Oil prices were slightly higher overnight in a partial rebound from oversold territory. The US Secretary of State is currently in the Middle East pushing for a ceasefire. The oil market is also weighing a stronger dollar against the outlook for Chinese demand after recent stimulus news, which includes yesterday’s rate cut.
Gold prices remain in all-time high territory amidst geopolitical uncertainty and despite a firm dollar.
Traders will want to look out for local CPI inflation data out this morning.
Key Indicators: USD/ZAR R17.60/$ | US 10yr 4.21% | Gold $2,735/oz | Platinum $1,011/oz | Brent Crude $73.70
The macroeconomic update is based on the morning call update by IG Markets |
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