Aspen, PPC and other big moves

Good morning Voornaam,

Earnings season continues and the updates are coming in thick and fast. Buckle up.
There were some big moves on the JSE yesterday. Aspen rallied hard, with the market choosing to focus on the constant currency numbers instead of reported numbers. PPC also had an immense day, driven by impressive underlying numbers. Things look tasty at RCL Foods, with the added benefit of you being able to learn about the market share of Ouma Rusks!
By the way, RCL Foods really values the Ghost Mail reader base, so they've placed their results on the platform this morning. Go give them a read alongside Ghost Bites.
Other good news stories included Clientele, the JSE (the company itself), MAS, Santam and MTN Ghana. Yes, it's possible to make money from telecoms in Africa!
Italtile can best be described as a "meh" set of numbers that I felt were quite different to the dire warnings given to the market last year. Bidvest is also in the meh bucket, with a real mixed bag in the underlying segments.
AfroCentric can only dream of meh status. Not only are the numbers awful, but there's practically no management narrative alongside them. Over at Mustek, the latest earnings guidance makes it really hard to see the appeal and understand what Novus is interested in buying there. Finally, Metrofile needs to make some changes to its geographical exposure, as the earnings continue to be disappointing.
Once again, there's also a huge number of Nibbles, so be sure to get all the details in Ghost Bites at this link>>>
In the latest Magic Markets podcast, we discussed whether the style of reforms seen in Argentina could work in South Africa and promote the emergence of more growth-focused companies. Looking to another emerging market for inspiration makes sense to us. Enjoy it here>>>
Take a break from earnings with the latest piece from Dominique Olivier is a fantastic look at a trend that should not be ignored. As younger generations become more health conscious, could alcohol companies go the way of tobacco? And what are the other impacts? Learn more here>>>
Finally, the latest structured product from the team at Investec closes on 7 March, so you don't have much time left to pull the trigger on it. With the Chinese market offering a fascinating risk-reward dynamic, the structure addresses downside risks while offering enhanced (but capped) upside. Don't miss the opportunity to learn more about the product in this podcast>>>
Have a lovely day!

INVESTEC: International Opportunities Limited - a Chinese equity structured product (closing on 7 March)

SATRIX: Don't waste the TFSA opportunity

GHOST WRAP: Retailers on sale on the JSE - a review of the first few weeks of 2025

GHOST BITES - Making sense of SENS on the local market

RCL Foods delivers a pleasing half-year performance

DOMINIQUE OLIVIER - Watch out for the wellness wave

INVESTEC PODCAST: Can tech titans keep up the pace?

International Business Snippet:

Saudi Aramco, a name you'll probably recognise immediately if you watch Formula One, announced a significant decline in net profit in 2024. The 12.5% drop was driven by lower oil prices, a rather joyous situation for South Africans who are firmly on the receiving end of petrol price pressures. The pumps do hurt a lot less these days. Dividends for the quarter took a knock as a result.
The share price is down 13% in the past year. If this carries on, the Saudi government might have to stop spending such a fortune on sport!
Our latest research in Magic Markets Premium is on MercadoLibre, an excellent eCommerce and fintech platform in Latin America. This is one of the most impressive growth companies in the world. Although the valuation reflects that reality, it stiill deserves serious consideration in any growth portfolio. Our subscribers can enjoy our detailed work on this growth stock.

Magic Markets: Private markets are a hive of activity

Macroeconomic indicators

US markets experienced a significant tech-led selloff overnight, with the Nasdaq-100 falling to its lowest levels since November 2024. The decline coincides with the implementation of previously delayed tariffs on Mexico and Canada, as well as new tariffs on Chinese imports. Disappointing US factory data released yesterday has further dampened investor sentiment, with market focus now shifting to potential trade tensions between the US and Europe.
Despite US market weakness, European benchmarks continue to trade near all-time highs, while Asian equity markets show mixed performance this morning.
The dollar and US Treasury yields have weakened overnight following softer US economic data, reinforcing expectations for monetary easing in the world's largest economy.
On balance we are expecting a slightly firmer start for the JSE All-Share Index, while the rand is slightly firmer on the day.
Oil prices have retreated as markets interpret strained US-Ukrainian relations as a potential sign that sanctions on major oil producer Russia could be eased. The US has temporarily paused aid to Ukraine as it pursues ceasefire negotiations in Eastern Europe.
Gold prices renewed their upward momentum yesterday, finding support from escalating tariff threats and the softer dollar environment.
Key Indicators: USD/ZAR R18.62/$ | US 10yr 4.15% | Gold $2,888/oz | Platinum $957/oz | Brent Crude $71.03
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.