| Good morning Voornaam, MTN gets plenty of attention. Amongst the African subsidiaries, MTN Nigeria is the focal point for investors, mainly because it's usually broken. MTN Uganda gets very little credit or attention, which is a pity. It really is a great business, with excellent growth rates in a country where the inflation rate is low and the currency appreciated against the US dollar last year. It just shows what is possible in African telecoms, hence I chose it as our feel-good story on this fine Friday.
The local financial services sector also dished up a couple of winners as we head into the weekend. FirstRand and Sanlam both released solid numbers. It still worries me that Wesbank is growing earnings much faster than FNB or RMB. As a country, we spend too much on flashy cars and not enough on building businesses. Anyway, it is what it is.
On the M&A front, Lesaka Technologies closed the Recharger deal and Lighthouse has added another property to its Iberian portfolio. Also, Mustek has released earnings, so Novus shareholders can now try and figure out what the appeal is. And if you get that right, do let me know - because honestly, I don't see it.
Finally, Grindrod had a tough year in 2024. You make money in logistics by moving things around, so border disruptions are never going to be helpful.
Get my analysis on all these updates (plus the Nibbles) in Ghost Bites at this link>>>
Unlock the Stock is back with a bang this year. Afrimat led us out the gates, with the recording of the webinar available for you to enjoy at this link. The next company to present on the platform is HomeChoice, so be sure to register for free to engage with management directly next week.
There's a brand new episode of the No Ordinary Wednesday podcast for you to enjoy. Hosted by Jeremy Maggs and part of the excellent Investec Focus Radio stable, the latest episode focuses on whether China is Trump-proof. You don't want to miss this one! Find it here>>>
In Magic Markets, the team from Mesh Trade joined us to explain how you can invest in gold using blockchain technology. Interesting, right? Talk about tradition meeting technology! To learn about fractional ownership of Krugerrands (and a discount available for a limited time), listen to this podcast>>>
The team from DealMakers has delivered another selection of M&A industry news and views today. Aside from the usual stuff - the M&A summary, corporate finance summary and African deal summary - you can enjoy pieces on how the macro environment might boost deal flow and the use of continuation funds in private equity.
And finally, it's last chance saloon for the latest Investec structured product focused on the Chinese equity market. With everything happening in the world in the past few weeks, I think that China has only gotten even more interesting. To learn about a structured way to invest in that market, listen to this podcast>>>
Have a lovely day! |
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| INVESTEC: International Opportunities Limited - a Chinese equity structured product (closing on 7 March) |
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| 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>>> |
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| SATRIX: Don't waste the TFSA opportunity |
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| | | 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>>> |
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| GHOST WRAP: Retailers on sale on the JSE - a review of the first few weeks of 2025 |
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| 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>>> |
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| GHOST BITES - Making sense of SENS on the local market |
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| Unlock the Stock - Afrimat |
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| In the 48th edition of Unlock the Stock, popular JSE mid-cap Afrimat returned to the platform for a management presentation and interactive Q&A with attendees of the webinar. The recording is available at this link>>> |
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| DOMINIQUE OLIVIER - Watch out for the wellness wave |
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| | | 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>>> |
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| INVESTEC PODCAST: Is China Trump-proof? |
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| | | Tariffs may have a diminished impact on China, as the country has strategically restructured its supply chains to lessen its reliance on the US. This is according to Campbell Parry, global resources analyst at Investec Wealth and Investment International, on the latest episode of No Ordinary Wednesday available here>>> |
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| International Business Snippet: |
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| Costco released earnings that were ahead on revenue but behind on earnings in terms of analyst expectations. Tariffs are going to be interesting here, with the CEO on record as saying that a third of Costco's sales in the US are of imported goods. This is precisely why tariffs are inflationary and don't necessary Make Anything Great Again, let alone America.
Gap shareholders have something to smile about, as the share price gapped higher by over 18%! This is a turnaround story, so even slightly decent news is treated as great news by the market. The guidance is for sales growth in the next year of 1% to 2%. The boost for the share price came from earnings, which were well ahead of estimates.
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. |
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| Magic Markets: Buying gold on the blockchain |
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| | | Magic Markets: If there’s one thing the markets taught us recently, it’s that gold remains as relevant as ever. Mesh Trade brings you a new way to invest in this store of value, giving you a perfect example of tradition combined with tech.
For a limited time, Mesh investors can buy Krugerrands at the best retail price in the market and on a fractional basis using blockchain technology. Mesh also offers a wide range of tokenised financial assets, giving investors a multi-asset solution on a single platform.
To learn more, listen to this podcast>>> |
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| US equity markets closed significantly lower yesterday, with technology stocks leading the decline despite President Trump's announcement of tariff exemptions for certain Mexican and Canadian imports. Chipmakers faced particularly steep selloffs as investors expressed concerns over lofty valuations and increasing competitive pressure from China's advancing AI sector.
European index futures held steady this morning following modest gains yesterday after the European Central Bank (ECB) implemented additional monetary easing measures. Asian markets showed slight resilience, with both the Hang Seng and Shanghai Composite indices registering moderate gains in early trading.
Market participants are adopting a cautious stance ahead of today's critical U.S. employment reports, with Non-Farm Payrolls and Unemployment Rate figures due this afternoon.
The US dollar continues to weaken alongside declining Treasury yields. Recent disappointing economic indicators have strengthened expectations for three Federal Reserve rate cuts this year, as reflected in Fed Fund Futures pricing.
The JSE All-Share Index is expected to open slightly lower this morning, although the rand remains firm against a softer greenback.
Industrial metals rallied yesterday, buoyed by anticipation of additional stimulus measures from China and the weakening dollar. Conversely, oil prices extended their decline amid concerns about global demand, particularly after reports showed a year-over-year contraction in Chinese oil imports during January and February. Gold prices remained relatively stable with a slight upward bias in morning trading.
Key Indicators: USD/ZAR R18.16/$ | US 10yr 4.25% | Gold $2,912/oz | Platinum $978/oz | Brent Crude $69.54
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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