| Good morning Voornaam, Welcome to a new week! We've reached that part of the year where the days are extremely short in Cape Town in particular, so I'm ticking off each week as being one step closer to spring.
There were two very interesting company updates on Friday that you should pay attention to.
The first is HCI and the deal to dispose of Gallagher Estate and a couple of other properties to SACTWU, which has a significant minority share in HCI. The deal terms are quite something, with HCI actually experiencing a cash outflow to get the deal done. In reality, HCI wants its other shareholders to get SACTWU out of a financially difficult situation. The way shareholders will feel about this depends on their view regarding whether HCI is currently undervalued or not. I cannot wait to read the independent expert report dealing with the fairness of the deal!
MAS has been in the news recently for the tough negotiations with joint venture partner Prime Kapital. The group has now released a summary of the terms of the joint venture agreement. There's a strong lesson in there about the dangers of agreeing to unanimous approval, especially when parties haven't contributed an equal amount of capital.
Get all the details you need on these updates in Ghost Bites at this link>>>
Are you working on your submission for the Think Big South Africa competition, a collaboration between PSG and Economic Research Southern Africa? They want your great ideas about how capital markets can enhance economic performance and facilitate job creation, with an incredible first prize of R500,000. Submissions are due at the end of August. You can find out everything you need to know about the competition here>>>
The latest Magic Markets podcast is a fun show on commodities. Not only did we talk about the usual suspects like platinum and gold, but also the softs - including the cheese spread! Yes, really. Enjoy it here>>>
Be sure to make time for Unlock the Stock on Thursday at 12pm. PBT Group will be joining us once again to talk about their recent results and the prospects for the business. Attendance is free, but you must register here>>>
And finally, if you feel like you just need a lucky break this week, then you'll love Dominique Olivier's latest piece on the Timothy Dexter story. Let's just say that this enterprising entrepreneur had more than anyone's fair share of luck! Enjoy it here>>>
Have a great day! |
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| SATRIX: The liquidity advantage - why ETFs should play a bigger role in institutional asset allocation |
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| | | Institutional investors are increasingly incorporating Exchange Traded Funds (ETFs) into their portfolios, attracted by their cost efficiency, transparency, and liquidity. As the investment landscape becomes more complex and cost-sensitive, ETFs are proving to be a powerful tool for modern portfolio management.
Duma Mxenge explores their growing role in institutional investing, advantages over traditional investment vehicles, and their impact on market liquidity and institutional strategy.
Enjoy this piece at this link>>> |
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| GHOST WRAP: The JSE Winners' Club in 2025 |
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| | | At the halfway mark in 2025, we've lived through some huge geopolitical shifts. The world's gaze has shifted beyond just the US market.
Many investors choose to stick with what they know in times like these. This means homegrown favourites on the JSE.
But which stocks have been the big winners thus far this year, and what do they have in common?
Enjoy it here>>> |
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| PODCAST: Capital Markets in South Africa - the Think Big South Africa Competition |
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| PSG Financial Services is the proud sponsor of the Think Big South Africa competition, in collaboration with Economic Research Southern Africa (ERSA).
PSG wants to encourage South Africans to get involved in their country at the highest level, bringing forward policy ideas and constructive solutions to drive conversations and real change in our country. PSG CEO Francois Gouws joined me to explain why they are such strong supporters of this initiative.
Enjoy it here>>> |
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| GHOST BITES - Making sense of SENS on the local market |
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| | | HCI's proposed deal to sell properties to SACTWU is far from a vanilla transaction. MAS' joint venture agreement with PK is a cautionary tale about the danger of unanimous approvals. Get the details in Ghost Bites>>> |
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| Unlock the Stock - Tharisa |
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| In the 56th edition of Unlock the Stock, Tharisa returned to the platform to talk through their recent numbers and strategy in the PGM and chrome market. The recording of the management presentation and interactive Q&A is available at this link>>> |
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| DOMINIQUE OLIVIER - Dumb luck: the Timothy Dexter story |
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| In a world obsessed with optimisation and five-year forecasts, there’s something deeply satisfying about success that arrives by mistake. And as mistakes go, Timothy Dexter was incredibly good at turning them into happy accidents. Dominique Olivier tells his story. Read it here>>> |
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| INVESTEC PODCAST: No Ordinary Wednesday - tensions, tariffs and the fragile global economy |
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| | | At the midpoint of 2025, the global economy stands at a precarious intersection of cooling inflation on one side and rising geopolitical tensions on the other. In this episode of No Ordinary Wednesday, Jeremy Maggs speaks with Investec Chief Economists Annabel Bishop (South Africa) and Phil Shaw (UK) about the shocks and signals shaping markets. Enjoy it here>>> |
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| International Business Snippet: |
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| The troubles in the alcohol sector continue, with Constellation Brands having missed estimates for revenue and earnings. Beer demand is down and tariffs on aluminium certainly didn't help matters. The CEO calls it "non-structural socioeconomic factors" - whatever those are.
I'll just call it what it is: younger consumers are drinking less and less over time. If beer becomes even more expensive because of tariffs, that's only going to make it worse.
In Magic Markets Premium this week, our subscribers got to enjoy our work on FedEx. Sitting right in the cross-hairs of the trade war, particularly given the focus on global trade with a US leg, there's much to learn from FedEx. The entire research library in Magic Markets Premium is available for just R99/month. |
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| Magic Markets: Insights from five global companies |
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| | | In this episode of Magic Markets, Mohammed Nalla and The Finance Ghost decided to each choose three companies from the recent research in Magic Market Premium, with the goal being to discuss some of the most interesting insights that came out of each one.
Both chose Berkshire Hathaway (predictably), so there were actually only five companies to discuss. Luckily, this left more than enough meat on the table. This podcast highlights some of the best insights from research into Berkshire Hathaway, BAE Systems, 3M, Waste Management and Alibaba.
Enjoy it here>>> |
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| Macroeconomic indicators and macro update |
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| Markets are trading cautiously this morning ahead of the expiration of the Trump administration’s temporary tariff suspension on Wednesday, July 9. Negotiators from key US trading partners are working urgently to reach agreements that would prevent higher tariffs from taking effect.
US and European index futures are mostly flat to slightly lower, while Asian markets have slipped further into negative territory.
The dollar index has firmed up modestly.
The South African rand has retreated from its best levels of the year, and we are expecting a flat to negative open for the JSE All-Share Index.
President Trump has warned that countries siding with the “Anti-American policies” of BRICS could face an additional 10% tariff.
Oil prices are edging higher despite OPEC+ agreeing to boost production by 548,000 barrels per day in August - surpassing market expectations of 411,000 barrels per day.
Gold prices are trading lower, moving inversely to the firmer dollar.
The Trump administration plans to notify 12 to 15 countries this week that tariffs will revert to the higher rates set on April 2 if no agreements are reached by August 1. While deals have been struck with some nations like the UK and Vietnam, talks with others, including India and Japan, remain difficult.
This update is provided by Shaun Murison. Connect with him on LinkedIn here.
Key Indicators: USD/ZAR R17.77/$ | US 10yr 4.35% | Gold $3,311/oz | Platinum $1,364/oz | Brent Crude $65.79 |
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