| Good morning Voornaam, With Halloween just around the corner, it's a good month to be a ghost. It's also a great time to learn about how to make the markets less scary, a topic close to my heart. Fedgroup doesn't want the markets to haunt you, which is why their investment approach is built around achieving stable returns across various asset classes. To learn more about how to generate solid returns with lower risk, Paul Counihan of Fedgroup joined me for a great podcast. As always, the full transcript is also available. Get it here>>>
Speaking of scary things, we now move on to Sasol. For many, Sasol was the first share price that gave a taste of what super-returns look like in the market. Those who bought right at the start of the pandemic locked in incredible returns - provided they sold in time. For a while now, Sasol's shares have been on a downward slide and the latest production update has only added to the negative sentiment.
There weren't too many good news stories available yesterday. Sasfin is just a messy situation, Vunani's earnings are down and WeBuyCars saw a sharp drop in HEPS thanks to transaction costs and additional shares in issue. At least their core business of buying and selling cars is doing well. Over at Adcorp, there were restructuring costs that impacted earnings, with some positivity in the underlying narrative.
The highlight of the day came from an unusual name: Oasis Crescent, a Shari'ah compliant property fund that achieves double-digit growth without the use of leverage!
All these updates, along with the departure of the Capital & Regional CEO and various other news stories in the Nibbles can be found in Ghost Bites here>>>
In case you haven't gotten there yet, be sure to listen to Episode 197 of Magic Markets featuring dealmaking professionals from Westbrooke who are out there having conversations with investors and companies every single day. This puts them in the perfect position to share insights into whether the GNU follow-through is really happening out there. Are companies feeling more confident and are investors willing to support that strategy? Find out here>>>
Have a great day! |
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| FEATURED: Don't let the markets haunt you |
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| | | In the month of Halloween, it's great to learn about how Fedgroup achieves solid returns with reduced levels of risk, making the whole experience far less frightening.
This is a topic close to my heart of course, with important topics like diversification and the use of alternative assets.
The podcast and detailed transcript are available here>>> |
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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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| | | 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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| 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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| 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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| Ghost Bites - local company news: |
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| Ghost Bites: The latest on Adcorp, Capital & Regional, Oasis Crescent, Sasfin, Sasol, Vunani, WeBuyCars 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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| After highlighting IPO news in India in the past few days, we now move to Japan where Tokyo Metro just pulled off the largest IPO on the Japanese market in six years. Yes, this is indeed the subway operator, with an IPO that was more than 15 times oversubscribed and a first day pop of 45% in the share price. Although that sounds like typical growth stock behaviour, the funny thing is that this is a cash cow - it's basically a utility!
Over in Germany, Deutsche Bank is profitable again. After 15 quarters of losses, that's a big deal! Aside from legacy issues working their way out of the system, other good news came from areas like investment banking where revenue was up considerably. I still far prefer US banks to their European counterparts, but at least there's good news here.
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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| The US dollar and 10-year Treasury Yields have continued to gain as we head closer to US elections. Dollar strength has gained traction from Trump improving at the polls ahead of the November 5 US elections and the suggestion of a less dovish Federal Reserve.
While the greenback has gained against the majors, most notably the yen, the rand has managed to hold its ground perhaps supported by key export commodity prices such as gold and platinum which are firmer this morning.
Major US and European equity benchmarks closed mostly lower overnight, while futures markets are currently suggesting a flat open today. The JSE All-Share Index is in turn expected to open flat today as well.
Oil prices have gained significantly as hopes of a ceasefire in the Middle East dissipate.
Gold has grinded further into new high territory on geopolitical concerns and safe haven appeal.
Traders will want to look out for local CPI inflation data out this morning.
Key Indicators: USD/ZAR R17.50/$ | US 10yr 4.23% | Gold $2,750/oz | Platinum $1,039/oz | Brent Crude $75.40
The macroeconomic update is based on the morning call update by IG Markets |
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