| Good morning Voornaam, I am very pleased to report that I have a full set of Ghost Bites for you today! Hopefully, SENS is properly underway for the year now.
The big news was Life Healthcare announcing the disposal of Life Molecular Imaging. Aside from being positively exposed to some earnout payments in years to come (additional money to be received if the business exceeds certain targets), this does strip out the most exciting part of the group. This could explain the somewhat subdued share price response, with only a modest positive close for the day.
In the mining sector, we saw a flurry of updates covering copper, chrome and PGMs. The companies in question are Jubilee Metals, Northam Platinum and Tharisa. They all have different issues to deal with at the moment, as is usually the case in mining.
In property, Schroder European Real Estate's valuations are under pressure again. It seems that we haven't seen the bottom in European valuations, with only the industrial portfolio going the right way.
Get all the juicy insights you need with just one click in Ghost Bites>>>
If you feel like a bit of brain gym this morning, there's a super interesting new piece from Nico Katzke at Satrix. He's written on whether higher risk always means higher reward in the market. Spoiler alert: there's a lot to be said for lower volatility equity investments. Learn from the best in this great article>>>
The first Magic Markets episode for the year includes a discussion on the market trends coming into 2025, as well as a sobering discussion on the JSE's performance in 2024 in the context of global markets. There's also some fascinating stuff in there about China and how the geopolitical landscape is playing out. The podcast and transcript are available here>>>
For the qualifying entrepreneurs among you, remember that MIC Khulisani Ventures is looking to provide capital to businesses that are ready to aggressively grow. Applications need to be in by the end of January, with capital expected to flow by March. To fully understand the opportunity, be sure to listen to this podcast>>>
Have a great day! |
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| SATRIX: Low-risk high-reward - the low-volatility anomaly |
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| | | Does taking higher risk always lead to higher returns? Or is there something to be said for seeking out lower volatility equity exposure, especially if it can generate similar overall returns?
Nico Katzke of Satrix digs into the numbers to bring you this insightful piece on portfolio and risk strategy.
Enjoy it here>>> |
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| Ghost Wrap - five insights from December |
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| Ghost Wrap: There were some great stories in December that are well worth keeping in mind in January. Italtile's share price needs a careful watch. Prosus is making major acquisitions again. Renergen is still dealing with teething issues - and a legal dispute as well. Metair is getting very little out of its Turkish business. Finally, will Bell Equipment shareholders kick themselves? I cover these topics in Ghost Wrap, brought to you by Forvis Mazars and available here>>> |
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| GHOST BITES - Making sense of SENS on the local market |
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| | | Life Healthcare is selling LMI. We saw several mining updates from Jubilee, Northam Platinum and Tharisa. Schroder European Real Estate's valuations are going the wrong way. Get it all here in Ghost Bites. |
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| DOMINIQUE OLIVIER - DeLorean: Who's driving this thing? |
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| Gullwing doors, fairy curses, cocaine busts and sneaky accounts in Panama. As it turns out, being the world’s most recognisable time machine isn’t even the most interesting part of the DeLorean story. Buckle up, dear reader, because Dominique Olivier is taking a little drive down memory lane – and where we’re going, we don’t need roads. |
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| Unlock the Stock - KAL Group |
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| | | Unlock the Stock: KAL Group joined the platform for the first time to talk about the performance and strategic focus areas in the broader agriculture industry. Enjoy the presentation and Q&A here>>> |
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| MAGAnomics: Trump and the global economy |
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| International Business Snippet: |
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| It seems as though US retailers had a decent festive shopping season, with the likes of Lululemon, Abercrombie & Fitch as well as American Eagle giving the market an update that sales were ahead of expectations. Others didn't have such good news, like Macy's.
Still, it was Abercrombie & Fitch that got burnt by the market, closing nearly 16% lower on the day! It's still up 37% in the past 12 months, so this shows you how dangerous it is to buy a stock that has had a strong run. 37% may not sound like much, but the five-year view is something different: a jump of over 660%!
It's been an incredible turnaround story, but perhaps one that is running out of steam?
Speaking of turnaround stories, Magic Markets Premium got 2025 going with Nike, as we are now the closest we've been to taking a long position in the company. Under new CEO Elliott Hill, Nike looks set to get back to its core DNA. There's vast competition in this market, so will that be enough? And is the valuation really cheap enough yet? Subscribers find out this week. |
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| Magic Markets: The year ahead - buckle up! |
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| | | Magic Markets: To kick off the year, we couldn’t resist talking about the major themes that have carried over from 2024 into a new calendar year. US – China relations, interest rates, frothiness in equity valuations – it’s all in here, along with a sobering discussion that gives context to the JSE performance last year vs. global alternatives. Find out more here>>> |
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| A late night rebound in US markets has seen some follow through in Asian equity markets this morning, suggestive of a positive start for the JSE All-Share Index today as well. Gains in the US and China have been led by the tech sector despite further talk of the Trump administration imposing tighter trade restrictions around AI technologies.
The dollar has softened slightly along with US yields and in turn we have seen the rand starting to claw back some strength overnight and this morning.
The sustainability of the rebound in equity markets is likely to be tested by this afternoon’s PPI and tomorrow's CPI inflation prints out of the US.
Oil prices have started to temper recent gains as market digest the potential impact of further US sanctions on Russia.
Gold prices are marginally higher in early trade finding some support from the softer dollar.
Key Indicators: USD/ZAR R18.98/$ | US 10yr 4.76% | Gold $2,673/oz | Platinum $961/oz | Brent Crude $79.60
As often as practically possible, insights from the IG Markets morning macro update by Shaun Murison will be featured here. Where this isn't possible, only indicators will be provided. If you want to learn more about trading, refer back to The Trader's Handbook, a podcast series that takes you through many of the important principles in trading. |
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