| Good morning Voornaam, Welcome to a new week!
Quantum Foods gave us a lovely reminder on Friday of how poultry sector earnings can jump. When bird flu stays away, things improve dramatically. That's good news for shareholders and even better news for breakfast fans who can enjoy lower egg prices as supply increases.
Over at Nampak, their turnaround continues. The underlying businesses all moved in the right direction, albeit to very different extents. Other earnings news on the day came in from Finbond, ISA Holdings and Powerfleet. There was also an important balance sheet update from Accelerate Property Fund.
In deal news, Primary Health Properties has done enough with its revised bid to get the attention of the Assura board. We also saw an announcement by AYO Technology that Sekunjalo intends to take it private.
Get the details on all these updates and the Nibbles in Ghost Bites at this link>>>
There's a new Magic Markets episode for you to enjoy. The recent US credit downgrade gave us a good excuse to talk about the dollar as reserve currency, while the JPMorgan investor day was an excellent opportunity to look at what the big dogs in banking are saying. Such is the quality of the JPMorgan management team that we opted to focus on finance boss Jeremy Barnum's insights instead of the more obvious choice of CEO Jamie Dimon! Enjoy it here>>>
In Unlock the Stock news, the most recent edition featured Astoria Investments. You can watch the recording of the management presentation and the Q&A at this link>>>
Greencoat Renewables is next up on Unlock the Stock. They are listing on the JSE as part of a fast-tracked secondary listing process. You can meet the management team on 29th May provided if you register here>>>
Finally, Dominique Olivier's latest piece is an excellent look at whether the court of public opinion really matters. Using SeaWorld and Duolingo as examples, does outrage mean lower profits over time? Find out here>>>
Have a great day! |
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| SATRIX: A Day in the Life of a Portfolio Manager at Satrix |
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| | | Ever wondered how the nuts and bolts of ETFs work? What goes into index tracking and making sure that it is achieved at the lowest possible cost? And are all indices created equal from a complexity perspective?
Lauren Jacobs (Senior Portfolio Manager at Satrix) shows you what a day in the life of a portfolio manager looks like.
Get ready to learn and be inspired at this link>>> |
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| GHOST WRAP: April's droppers and whoppers |
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| There may have been many public holidays in April, but that didn't stop the market from reacting to the broader geopolitical turmoil. With recession concerns as a key theme, which stocks did well and which ones delivered a nasty drop? This podcast is an overview of recent big share price moves among larger local companies on the JSE, revealing some interesting trends. Ghost Wrap is brought to you by Forvis Mazars. You can find the recording and the transcript at this link>>> |
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| GHOST BITES - Making sense of SENS on the local market |
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| | | Nampak's turnaround continues. Quantum Foods had a much better period. Sasol Oil will be paid billions by Transnet. Primary Health's bid is making Assura think. Accelerate Property Fund, AYO Technology, Finbond, ISA Holdings and Powerfleet also had updates. Get the details in Ghost Bites>>> |
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| Unlock the Stock - ASP Isotopes |
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| In the 52nd edition of Unlock the Stock, ASP Isotopes joined the platform for the first time to give investors insight into the company before it lists on the JSE later this year. The recording of the management presentation and interactive Q&A is available at this link>>> |
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| DOMINIQUE OLIVIER - The court of public opinion: does it matter? |
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| | | Public backlash may be loud, but it appears as though capitalism has noise-cancelling headphones. Using SeaWorld and Duolingo as examples, Dominique Olivier examines whether the bark of social media outrage has any bite in this great piece>>> |
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| INVESTEC PODCAST: Episode 100 - a world in flux |
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| | | From a global pandemic to fractured supply chains, energy shocks, inflation spirals, rate hikes, AI disruption, war, and geopolitical realignment - the last four years have been anything but dull. The 100th episode of No Ordinary Wednesday is a discussion on regional trends that will shape the years to come. Get the insights in this podcast>>> |
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| International Business Snippet: |
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| The talk of the weekend was Apple, which finds itself staring down the barrel of large potential tariffs on non-US made iPhones. This would impact smartphone competitors as well, so this goes back to the broader questions around whether tariffs are just a source of inflation and additional tax revenue rather than an attempt to actually change the underlying supply chains. You can imagine how costly and difficult it would be to move smartphone production to the US, miles away from where all the components are manufactured.
Trump's approach is usually one of shock value and then a more measured outcome, but anything is possible. Apple's share price is down 20% year-to-date. The company has become so reliant on the iPhone for its growth (hardware sales drive the higher-margin services revenue) that any knock to that part of the business will really hit the share price.
This week in Magic Markets Premium, we've covered Simon Property Group. The iconic US REIT is mainly focused on premium retail properties, which means that it's the pick of the litter when it comes to retail REITs in that market. But the first step is to decide whether you want such a pet in the first place. Are the risks to developed market retail property too great? As our subscribers will find out in the research, it's pretty 50-50 at thhe moment. |
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| Magic Markets: Mesh.Trade - Unlocking Private Markets |
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| | | Magic Markets: As the recent trend in IPOs and delistings on public markets tells us, an increasing number of companies are looking to private markets for their capital raising needs. This means that retail investors are being shut out of these opportunities, which is particularly problematic as these early-stage opportunities usually offer the highest potential returns.
Mesh.Trade is committed to increasing access for investors, which is why the platform is designed to enable issuers to raise debt and/or equity funding.
Connie Bloem joined us to talk about why access to good quality private assets is so important in the South African market. To learn more, listen to this podcast>>> |
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| Macroeconomic indicators and IG Markets macro update |
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| US equity markets remained closed Monday for Memorial Day, but futures contracts posted early gains after President Trump pushed back his threatened 50% European Union tariff from June 1 to July 9, providing breathing room for ongoing trade negotiations.
The tariff delay offered relief to markets that had declined last week amid escalating trade tensions. Trump's threats had particularly weighed on major technology companies like Apple, contributing to broader market weakness before the holiday weekend.
While the postponement has reduced immediate trade war concerns and supported global market sentiment, investors maintain a cautious stance given the fluid nature of international negotiations and persistent geopolitical risks.
Asian markets showed varied responses to the trade news. Hong Kong's Hang Seng Index dropped 1.3%, with technology and automotive shares leading declines. Meanwhile, mainland China's CSI 300 index fell a modest 0.13%, suggesting measured pessimism in Chinese markets.
Recent optimism surrounding structural economic improvements and reduced trade friction has been offset by persistent deflationary pressures and broader global economic uncertainty.
The South African rand strengthened against a weakening dollar, while the JSE All-Share index was positioned to open unchanged after reaching record highs Friday.
The US Dollar Index declined below 99 to approximately 98.74, down from levels above 101 earlier this month. The dollar's weakness reflects uncertainty surrounding American trade policy and growing concerns about the nation's fiscal trajectory.
Gold retreated from two-week highs as Trump's July 9 EU deadline replaced the more immediate June 1 threat, reducing safe-haven demand for the precious metal.
Oil prices advanced in early Asian trading, with the extended EU negotiations timeline alleviating concerns about tariffs that could damage global economic growth and energy consumption.
Key Indicators: USD/ZAR R17.83/$ | US 10yr 4.51% | Gold $3,341/oz | Platinum $1,094/oz | Brent Crude $64.96
As often as practically possible, insights from the IG Markets morning macro update by Shaun Murison will be featured here. Where this isn't possible, only indicators will be provided. If you want to learn more about trading, refer back to The Trader's Handbook, a podcast series that takes you through many of the important principles in trading. |
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