| Good morning Voornaam,
Fresh out the oven: Ghost Bites: Capital Appreciation released numbers that show just how strong the payments division is. Vukile is doing really well in the property sector. Ninety One and Sygnia released numbers, while Trustco and York Timber gave updates on corporate activity. Look out for Nictus 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>>> Fedgroup thinks differently about portfolio construction and how important elements like yield and inflation protection can be brought in. On this Ghost Stories podcast, Michael Field joined me to discuss their approach. As one of the largest beekeepers in the country, Fedgroup sees the world differently to most. The podcast and full transcript are available here>>> In a brand new Magic Markets episode, we went back to our roots and covered local topics around the rand, South African bond yields and the state of play for South African consumers. Are we facing coalition politics, or collision politics? And what does this mean for South Africa? The podcast and full transacript are available at this link>>> We are about to enter a busy period for Unlock the Stock. The next event features Oceana, with management ready to engage with you at 12pm on 13 June. You simply need to register here>>> |
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| In case you missed it: 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>>> 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>>> |
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| The only free lunch in investing |
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| With volatility as the theme in markets in a year of elections, it’s important to keep your head as an equity investor. Take a long-term view and let the market do its job. Easier said than done, of course.
Kingsley Williams joined me to share practical tips and important insights into investing. The podcast and full transcript are available here. |
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Local company news:
Capital Appreciation is a fascinating local technology group that is showing exactly how powerful these business models can be when they achieve scale. The incremental revenue vs. profit growth in the payments division shows you what people mean when they talk about "growth dropping to the bottom line" - but the software division does need some work.
In the local property sector, Vukile stands out as one of the best REITs on the market. The latest numbers show why, with strong performance in South Africa and Spain.
In the financial services space, we saw updates from Ninety One and Sygnia. In both cases, net outflows remain a problem as investors struggle with higher interest rates.
York Timber announced an acquisition of land and plantations, while Trustco gave an update on its diamond mining business. And finally, Nictus released a trading statement.
This is all available in Ghost Bites at this link>>>
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| Olympic fever and other ailments |
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| At the Men's Marathon at the 1904 Olympics, let's just say that the first iteration of the event didn't go so smoothly. From wild dogs and hitchhiking athletes through to seemingly indestructible Cubans, prepare to be entertained by Dominique Olivier in this piece>>> |
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| Ghost Wrap: Balwin | Quantum | De Beers | Tiger Brands | Bidcorp |
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| After the recent flurry of results, make sure you're up to date on these five companies. You only need a few minutes, thanks to Mazars.
Listen to Ghost Wrap here>>> |
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International business news:
Lululemon put a smile on my face this morning, as I recently bought into the company and the share price just popped 10% higher. Although growth is hard to come by right now, the company beat estimates of both earnings per share and revenue.
The market is looking for any positive news right now out of retailers and consumer brands, so management commentary around a "runway for growth" and the ability to "powerfully deliver" will give the share price a boost.
I'm just happy to have been patient enough to buy into Lululemon share price weakness, with the outcome looking decent so far. And why did I do it? Because we covered the stock in Magic Markets Premium and we eat our own cooking there.
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. |
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| Macroeconomic Update The ADP non-farm employment change number was short of market estimates yesterday, pointing to a softening labour market. Ahead of non-farm payrolls tomorrow, that's important. The jobless claims data release is scheduled for today.
To balance that view, US services PMI and ISM non-manufacturing PMI numbers remained strong, so mixed data is still the theme.
The S&P and Nasdaq both closed at record highs yesterday as rate cut hopes climbed.
Key indicators: USD/ZAR R18.91; US 10-year 4.29%; Gold $2,370; Platinum ZAR R18,947; Brent Crude $78.77
This macroeconomic update is based on TreasuryONE's morning update. |
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