Hyprop has shown us just how deep the local capital markets are, with R808 million raised in a single day - and best of all, the use of that capital is still up in the air! Will they or won't they make a play for MAS?
Over at Raubex, the market celebrated the conclusion of the investigation based on a recent whistleblower report. Nothing untoward was found, so the group could go ahead and release results. I'm afraid that the results themselves weren't so great though, with pressure in the chrome business in particular.
For the fans of fur babies, Sabvest is investing in a pet business that is making tons of acquisitions aimed at good boys (and of course, superior cats) everywhere. Jokes aside, the business actually counts birdseed as its core strength! In other deal news, AngloGold is selling a Brazilian mine.
Bell Equipment is worth looking at, not least of all because I think Barloworld shareholders need to think very carefully about how greedy they want to be regarding the deal on the table. Bell is a cautionary tale.
We also saw numbers from Momentum, Sirius Real Estate, Sygnia and Telkom. It was a fun day of news!
Get the details on all these updates and the Nibbles in Ghost Bites at this
link>>>
Buckle up for a fantastic new Ghost Stories podcast featuring Siyabulela Nomoyi of Satrix. We decided to do a life-after-COVID show looking back on five years of the markets. Siya dug into the stats and brought excellent insights to the discussion. I cannot recommend this enough. Find it here>>>
There's a fresh episode of Unlock the Stock for you to sink your teeth into. Calgro M3 is no stranger to the platform, but they have have a new CEO in place and the recent results are worth understanding in detail. Watch it here>>>
The latest Magic Markets episode is a discussion with Muofhe Kwinda about his journey from being a financial analyst in the investment space to an entrepreneur with interests in mining and agriculture. As a listener to the show, he reached out with a desire to share some of his learnings from the journey. I'm glad that we accepted that offer, as it was a great show! Enjoy it here>>>
Finally, the latest piece by Dominique Olivier is the story of Red Bull's incredible business journey, which all started when an Austrian businessman sampled an energy drink in Thailand. The rest, as they say, is history. Give yourself wings here>>>
Have a great start to your week! |
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SATRIX: Life after COVID - a five-year review of the markets |
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| | Five years ago, the world was a wild place. We were "staying home and staying safe" - and global central banks were cutting rates dramatically in an effort to stimulate economies under impossible circumstances.
With a great selection of statistics to share with the listeners, Siyabulela Nomoyi of Satrix was a wealth of knowledge in this podcast about how markets have performed in recent years, particularly in terms of which indices did well and which were disappointing.
Get a healthy dose of market insights at this link>>> |
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Intengo Market: Nuances of the South African Listed Debt Market |
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| | South Africa’s listed debt market presents an intriguing blend of opportunities and challenges. Characterised by its unique structure, participant dynamics, and liquidity constraints, this is a space worth examining for institutional and retail investors alike. This overview is brought to you by Intengo Market. Enjoy it here>>> |
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GHOST WRAP: April's droppers and whoppers |
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There may have been many public holidays in April, but that didn't stop the market from reacting to the broader geopolitical turmoil. With recession concerns as a key theme, which stocks did well and which ones delivered a nasty drop? This podcast is an overview of recent big share price moves among larger local companies on the JSE, revealing some interesting trends. Ghost Wrap is brought to you by Forvis Mazars. You can find the recording and the transcript at this link>>> |
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GHOST BITES - Making sense of SENS on the local market |
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| | Hyprop raised over R800m in cash. Sabvest is investing in pets. Raubex found no substance to whistleblower allegations and released results. We also saw numbers from Altvest, Bell Equipment, Momentum, Sirius Real Estate and Telkom. AngloGold is selling a mine. Get the details in Ghost Bites>>> |
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Unlock the Stock - Calgro M3 |
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In the 54th edition of Unlock the Stock, Calgro M3 returned to the platform. With a new CEO in place, they discussed the recent numbers and the growth strategy. The recording of the management presentation and interactive Q&A is available at this link>>> |
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DOMINIQUE OLIVIER - Red Bull: the thing with wings |
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| | With over two-thirds of the energy drink market in a vice grip, Red Bull isn’t just a beverage - it’s the undisputed overlord of its category. But what does any of this have to do with death-defying stunts, football teams and the youngest Formula 1 driver in history? Welcome to perhaps the best example of lifestyle marketing in the world. Give yourself wings here>>> |
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INVESTEC PODCAST: Wine in Focus - Investing in Wine and Pairing Enjoyment with Returns |
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| | Wine in Focus is an Investec Focus Radio five-part vodcast series hosted by Lerato Motshologane, a dealmaker at Investec for Business and founder of Discover Wines. Lerato chats to wine makers, investors, farmers and judges on everything from how to invest in wine, to innovations changing the way we farm, and South Africa's growing prominence on the international fine wine market. Get the insights in this podcast>>> |
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International Business Snippet: |
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Although the retailers are more interesting at the moment, we also saw a couple of tech releases in the US market recently.
Salesforce is one such example, with the share price down 4.5% over 5 days as the market didn't particularly like what it saw. This is despite the company beating first-quarter estimates and upgrading its guidance based on AI. The main concern seems to be around the intended acquisition of Informatica, with the market questioning why Salesforce is distracting itself with deals at the moment - a valid question indeed!
As for HP, they've taken a 12.4% knock in the past 5 days. This one is easier to understand, as the company missed on earnings and gave a disappointing outlook to the market. Naturally, they are scrambling to adjust their supply chain for all the tariff uncertainty. It's just rather difficult when nobody knows what will happen with tariffs!
This week in Magic Markets Premium, we've covered TJX. This is an off-price retailer that has an incredible business and perhaps the most flexible procurement strategy of them all. But will that be enough in this environment? Our subscribers find out for just R99/month, while enjoying our vast library of company reports. |
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Magic Markets: US Downgrade and JPMorgan Views |
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| | Magic Markets: The US credit downgrade by Moody’s wasn’t a huge surprise, as they are just playing catch-up to what other ratings agencies already did. The complacency in the market in response to the downgrade is interesting though, as it became the catalyst for us to talk about the dollar as the world’s reserve currency.
In the same week, a JPMorgan investor day provided an excellent opportunity to dig into the wisdom of not just Jamie Dimon, but CFO Jeremy Barnum as well. Aside from some insights into JPMorgan’s view on the economic outlook, Barnum delivered an absolute masterclass in capital allocation.
We covered these topics here>>> |
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Macroeconomic indicators and macro update |
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The Trump administration is urging countries to submit their best trade offers by Wednesday as it seeks to accelerate negotiations with multiple partners ahead of a self-imposed deadline just five weeks away. Officials are requesting comprehensive proposals covering tariffs, quotas, non-tariff barriers, digital trade, economic security, and country-specific commitments to finalize agreements quickly.
President Donald Trump’s unpredictable trade policies continue to unsettle markets, with the US dollar dropping to a six-week low amid signs of economic weakness. This week, high-stakes talks between Trump and Chinese President Xi Jinping are expected, as trade tensions between the world’s two largest economies remain high.
In early trading, US and European stock futures are slightly lower as investors await Eurozone inflation data ahead of the European Central Bank’s upcoming rate decision. Meanwhile, shares in China and Hong Kong are rising, boosted by record highs in banking stocks and a rebound in automakers.
The dollar index is steady this morning after weakening yesterday.
The rand remains firm, although we are expecting a slightly softer open on the JSE All Share index today. The expected weakness follows the index's recent move to new high territory.
Gold prices surged yesterday on the back of a softer dollar and ongoing trade uncertainties but have eased slightly today.
Oil prices climbed in early Asian trading amid supply concerns, with Iran rejecting a US nuclear deal proposal crucial to lifting sanctions, and Canadian oil production disrupted by wildfires.
This update is provided by Shaun Murison. Connect with him on LinkedIn here.
Key Indicators: USD/ZAR R17.82/$ | US 10yr 4.42% | Gold $3,353/oz | Platinum $1,061/oz | Brent Crude $64.79 |
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