| Good morning Voornaam, Welcome to March! We are officially in the first month of autumn, although the autumn equinox (the point at which day and night are roughly equal in length) only happens later this month.
Either way, it feels like the depths of winter for some of the companies on the market. MTN Nigeria is one of them, with ongoing forex impacts on not just the debt, but also the underlying operating expenses that reference the USD.
In the mining sector, the cycle hasn't been kind to Merafe, Northam Platinum or Thungela. All three have released numbers that are a good reminder for investors that cycles can make you sick.
There's some good news, at least. Local investment holding company Sabvest had a solid year of growth in its portfolio. Property group Safari Investments was also firmly in the green. Primary Health Properties also headed in the right direction in terms of earnings, particularly viewed in the context of hard currency returns.
In deal news, AECI has announced a B-BBEE deal for AECI Mining and Altvest managed to raise some debt funding for its ACOF fund.
There are also a huge number of Nibbles, so be sure to get all the details in Ghost Bites at this link>>>
In the latest Magic Markets podcast, we discussed whether the style of reforms seen in Argentina could work in South Africa and promote the emergence of more growth-focused companies. Looking to another emerging market for inspiration makes sense to us. Enjoy it here>>>
We are now in a new tax year, which means you have the opportunity to take advantage of another tax-free investment annual allowance. The sooner you do it, the more you benefit from the impact of compounding. To help you understand the power of this structure, Siyabulela Nomoyi of Satrix joined me on this podcast>>>
In the latest No Ordinary Wednesday podcast presented by Investec, Jeremy Maggs and Tinus Rautenbach discussed whether the tech titans in the US can continue to dominate the market this year. Find it here>>>
Finally, the latest piece from Dominique Olivier is a fantastic look at a trend that should not be ignored. As younger generations become more health conscious, could alcohol companies go the way of tobacco? And what are the other impacts? Learn more here>>>
Have a lovely day! |
|---|
|
|---|
| INVESTEC: International Opportunities Limited - a Chinese equity structured product (closing on 7 March) |
|---|
|
|---|
| China is a land that is fraught with risk and brimming with opportunity. With enhanced upside as well as downside protection, International Opportunities Limited is a structured product that seeks to balance the risks and rewards available in Chinese equity markets.
International Opportunities Limited offers 1.3x geared exposure to the CSI 300 Index, capped at 60% growth for a maximum return of 78% in USD. In addition, there is 100% capital protection at maturity in USD.
Japie Lubbe of Investec Structured Products joined me to discuss the structure in detail. Get it here>>> |
|---|
| |
|---|
| SATRIX: Don't waste the TFSA opportunity |
|---|
|
|---|
| | | Tax-free savings accounts (TFSA) are one of the most building blocks in any equity portfolio. The advantage of compounding tax-free returns over a long period is incredibly powerful and can really turbocharge a long-term wealth creation journey.
To discuss the importance of TFSA investments and the opportunities available to investors in the ETF universe, familiar voice Siyabulela Nomoyi of Satrix returned to the Ghost Stories podcast.
Enjoy it here>>> |
|---|
|
|---|
| GHOST WRAP: Retailers on sale on the JSE - a review of the first few weeks of 2025 |
|---|
|
|---|
| The retail sector got off to a very poor start in 2025. With practically the entire sector down, are there stocks that were punished more than they should've been?
This podcast is a useful summary of recent retail updates across the clothing and grocery sectors, as well as other relevant areas.
You can find the recording and the transcript (with charts) at this link>>> |
|---|
| |
|---|
| GHOST BITES - Making sense of SENS on the local market |
|---|
|
|---|
| | | Merafe, MTN Nigeria, Northam Platinum, Primary Health Properties, Sabvest, Safari Investments and Thungela all released important numbers. AECI announced a B-BBEE deal and Altvest raised debt capital for ACOF. All the details are in Ghost Bites>>> |
|---|
|
|---|
| Barloworld: standby offer triggered following scheme of arrangement vote |
|---|
|
|---|
| Barloworld has released a detailed media statement dealing with the mechanics of the standby offer, as well as the official response by the board to corporate governance concerns raised by the market. I highly recommend that you read it here>>> |
|---|
| |
|---|
| DOMINIQUE OLIVIER - Watch out for the wellness wave |
|---|
|
|---|
| | | For decades, alcohol and cigarettes have been the go-tos for taking the edge off life’s chaos. With Gen Z opting out of these vices, Big Alcohol and Big Tobacco are scrambling to stay relevant in a world where wellness is the new rebellion. Read it here>>> |
|---|
|
|---|
| INVESTEC PODCAST: Can tech titans keep up the pace? |
|---|
|
|---|
| | | Big tech stocks have stabilised after the DeepSeek shock in January, but will they continue to dominate the market this year, or is the next disruption around the corner? Tinus Rautenbach, head of Investec’s new trading and investing platform, Clarity, shares his views on the latest episode of the No Ordinary Wednesday podcast. |
|---|
|
|---|
| International Business Snippet: |
|---|
|
|---|
| There's a school of thought that IPOs are a bubble. But what about when the IPO is for bubble tea?
Mixue, China's largest bubble tea chain, has listed in Hong Kong. The IPO was certainly a success, with a heavily oversubscribed offering and a juicy pop of over 40% on debut. CNBC reports that the Hong Kong offering was over 5,200 times oversubscribed, which is why the company then reallocated more shares to the offering on that exchange.
It's good to see some positive sentiment towards Chinese consumer stocks. Although bubble tea is obviously a specialist sector, the Chinese consumer market as a whole is key to most global FMCG groups.
Our latest research in Magic Markets Premium is on MercadoLibre, an excellent eCommerce and fintech platform in Latin America. This is one of the most impressive growth companies in the world. Although the valuation reflects that reality, it stiill deserves serious consideration in any growth portfolio. Our subscribers can enjoy our detailed work on this growth stock. |
|---|
|
|---|
| Magic Markets: Private markets are a hive of activity |
|---|
|
|---|
| | | Magic Markets: For companies seeking capital, founders wanting to exit their stake and investors who desire diversification and solid returns, private debt and equity markets offer a vibrant ecosystem. Dino Zuccollo of Westbrooke Alternative Asset Management joined us to discuss trends and strategies in this asset class, along with general levels of adoption by investors. Get the insights in this podcast>>> |
|---|
|
|---|
| US equity benchmarks finished higher on Friday, buoyed by the latest core PCE inflation report - the Federal Reserve's preferred inflation gauge - which showed a decline to 2.6% from an upwardly revised 2.9%. This moderation in inflation has improved market sentiment regarding the future trajectory of monetary policy in the world's largest economy.
In currency and bond markets, the dollar index is showing modest weakness this morning, while the US 10-year Treasury yield has fallen to its lowest point since November 2024.
European index futures are tracking US gains, though Chinese equity markets remain under pressure this morning, still feeling the impact of President Trump's indication of additional tariffs on the region. Meanwhile, tariffs on Mexico and Canada are scheduled to increase tomorrow, intensifying pressure on today's negotiations.
The JSE All-Share Index is expected to open higher this morning in line with US and European markets. The rand has firmed slightly after softening over the weekend.
Cryptocurrencies have posted significant gains following President Trump's endorsement of using digital assets as reserves. His proposed reserve assets include Bitcoin, Ethereum, XRP, Solana, and Cardano.
In the commodities space, both gold and oil prices are trading slightly lower in early trading today.
Key Indicators: USD/ZAR R18.62/$ | US 10yr 4.22% | Gold $2,865/oz | Platinum $948/oz | Brent Crude $72.90
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. |
|---|
|
|---|
|
|
