Brait's bait

Good morning Voornaam,

Fresh out the oven:

Ghost Bites: Brait has something in common with the ANC now - a 17% drop in a single day! Fairvest and Sirius Real Estate released important property numbers, as did MAS. Look out for Mahube Infrastructure and Marshall Monteagle as well, all in Ghost Bites>>>

There is only one free lunch in investing, as this great new Ghost Stories episode with Kingsley Williams shows. Including a detailed transcript to make it easier to soak up the insights, Kingsley brought his wealth of experience in the markets to a great conversation about investing in general. Brought to you by Satrix, you can enjoy it here>>>

This year, SA is set to become the tenth-largest solar market in the world. In episode 4 of The Current brought to you by Investec, Iman Rappetti spoke with Investec's Melanie Humphries, Bernard Geldenhuys and De Wet Taljaard from the South African Photovoltaic Industry Association (SAPVIA) to explore SA’s apparent solar boom. Enjoy it here>>>

Over in Paris, the locals are planning a rather revolting protest against upcoming Olympics, Even that isn't the weirdest story to come from this event that is steeped in history. That honour surely goes to the Men's Marathon at the 1904 Olympics, with enough characters to justify an entire TV series. Dominique Olivier entertains you with this story here>>>​

In case you missed it:

Nvidia has been the headline-grabber of the year, so we dived into the recent earnings and relative share price performance vs. peers. Intuit is a software-as-a-service powerhouse that is well worth understanding, though the share price looks to be forming a dangerous double top. Episode 177 of Magic Markets (brought to you by Future Forex) delivers insights into both these great companies. You can listen to the show or read the full transcript at this link>>>

​Ghost Wrap: Enjoy a brand new episode covering Balwin, Quantum Foods, De Beers, Tiger Brands and Bidcorp, brought to you by Mazars. Listen to it here>>>

​This is a massive election year, with over 60 nations going to the polls. On the latest Investec No Ordinary Wednesday podcast, Investec Wealth & Investment Chief Investment Strategist Chris Holdsworth shared his insights on the election outcomes that matter most to markets. Listen to the show here>>>

The only free lunch in investing

Local company news:

Brait is a bit like Mike Tyson. When you feel like the stock is done hurting you, it punches you again. And again. Then, it bites your ear.
There's no other way to explain a stock that is down 96% since the global financial crisis. Those who felt clever and only bought after much damage was done in the "lost decade" in South Africa have nothing to smile about either, as the stock is down 95% over five years.
And yet here we are, on the ropes and down 17% in a single day on the news of a heavily discounted rights offer that is needed to reduce debt. The underwriter, unsurprisingly, is Christo Wiese's Titan group.
In a world of things that people can invest in, I'll never understand why people wake up in the morning and get excited about being a minority shareholder in something like Brait.
Moving on, there were three interesting property updates. Fairvest has two classes of shares and comparing the performance is fascinating. Sirius Real Estate is marching on, delivering decent growth numbers in hard currency. MAS is fighting tough debt markets ahead of major repayments due in 2026, but there's some positivity coming through in the narrative now.
Look out for Mahube Infrastructure and Marshall Monteagle as well, all available with one click in Ghost Bites at this link>>>

Olympic fever and other ailments

Ghost Wrap: Balwin | Quantum | De Beers | Tiger Brands | Bidcorp

International business news:

Stellantis is the owner of Jeep (and many other automotive brands). The group is basically the polony of the automotive industry, with a collection of all the unappetising bits that didn't fit anywhere else. Oh, and my favourite of all - Maserati. The rose among the thorns. Bella.
Jeep is pushing into electric vehicles, which is good news for anyone who has ever wanted a Wrangler but isn't related to the owner of an oil field. Although EV sales are under pressure, offering a model that doesn't cost the earth to run probably isn't a bad idea. They expect to achieve 40% to 50% growth in plug-in hybrid electric vehicles (PHEVs) in the US this year.
And in further industry news that makes the Ford CEO cooler than he already is, their latest project at the company is the restoration of an abandoned train station in Detroit into the new technology campus. This obviously has major significance for Detroit, a city that hasn't had an easy time of things. If you're keen to see what the building looks like, check out this link.
We just covered tech group Intel in Magic Markets Premium and this week we will be covering Foot Locker. To get access to this research and the rest of the vast library, subscribe to the platform here.

Macroeconomic Update

Weak US manufacturing PMI data raised hopes that the Fed could cut rates in September, pushing the dollar weaker. US Treasury yields fell across the curve, with the 10-year down at 4.40% from 4.49% and the 2-year at 4.82% from 4.87%. Today's data release is the JOLTs job openings number, but the real focus will be on Friday's non-farm payrolls and unemployment numbers.
The rand closed stronger yesterday on optimism around the ANC's likely coalition partners.
Gold had a good day thanks to the rate cut expectations, while PGMs are firmer this morning. Oil took beating of note yesterday, down 4.5% over the last day based on a possible increase in supply later this year.
Key indicators: USD/ZAR R18.56; US 10-year 4.41%; Gold $2,349; Platinum ZAR R18,912; Brent Crude $77.75
This macroeconomic update is based on TreasuryONE's morning update.