| With the market back in risk-on mode it appears that any good news, however small, is being used to push prices higher. That is resulting in large upward swings in some shares. Brait's stock rose over a third at its best yesterday after it announced the sale of Iceland, the UK retailer of frozen foods it first invested in back in 2012. The disposal is part of the investment group's five-year strategy to realise value from its portfolio and is being driven by Ethos, the private equity firm it partnered with last November. Investors also welcomed news that Ascendis Health has reached a debt refinancing deal with its lenders that means it won't have to rush to sell some of its assets in order to pay down debt. Meanwhile, debt free Alexander Forbes is paying a special dividend to shareholders after selling its insurance business to Momentum Metropolitan. Following the disposal, it isn't required to hold as much regulatory capital, freeing up cash. More on those stories to following, along with trading statements from Sasfin and RCL Foods. Both companies have been affected by Covid-19 and the national lockdown. Investors seemed to take their profit warnings in their stride. Finally, Fortress REIT says this year's interest rate cuts have boosted interest in the office and industrial properties that it is disposing of due to the affordability factor. I hope you have a good day. Stephen Gunnion Managing Editor, InceConnect
The latest from Ingham Analytics. Energy (Oil & Gas) - Sasol: "Henry sends a message" The Sasol note "Henry sends a message" has been a popular download this past week. Ingham Analytics cautions that share price action is driven more by sentiment rather than any material change in fundamentals. It now forecasts Brent oil averaging 25% lower for the year to June 2020 whilst it estimates a 79% reduction in adjusted EPS, and possibly worse. Stock traders though can still take advantage of volatility. Maybe time for profit taking? Prosus/Naspers/Tencent: "Illusory value" The topic of Prosus/Naspers/Tencent is always popular and "Illusory value" brings readers up to date with its thinking. Banking sector: South African banks' balance sheets surge" Banking stocks and central bank actions is a core research focus area and "South African banks' balance sheets surge" gives the latest on this subject - the difference between February and March is a staggering R0.5 trillion due to Covid-19. Watch out for another note from top trader Andrew Kinsey on Wednesday. "What do the currencies say today?" examines the largest market of all, namely foreign exchange. The objective is to identify broad trends in this vast bazaar of money flows and specific opportunities which may appear in one of more of the currency pairs focused upon. | 