Local company news:


Ghost Bites is brought to you by Fedgroup.


The PG in PGMs needs to stand for Parental Guidance at this point in the cycle. Sensitive readers may not cope well with a 71% drop in HEPS at Anglo American Platinum, or a drop of between 87.5% and 97.5% at Northam Platinum. When the commodity price drops severely, it's a bloodbath out there. 

Certainly less severe but also not encouraging, we find challenges at Italtile (South Africans aren't spending on their homes) and Transpaco, where operataing leverage has gone in the wrong direction. Telkom is treading water in terms of achieving flat EBITDA despite revenue moving higher, while Aveng is setting its sights beyond South Africa for opportunities.

The good news story is small cap 4Sight, which has delivered exceptional share price returns lately. Among the largest companies, Vukile is taking advantage of positive sentiment towards its property portfolio! and is raising equity without even indicating exactly what the proceeds will be used for!

Get all the details in Ghost Bites here>>>

For an efficient and insightful update on local news, the Ghost Wrap podcast should be a staple on your favourite podcast player. Made possible by Mazars, the latest episode needs just 6 minutes of your time to update you on Sasol, ArcelorMittal, Sappi, Curro and British American Tobacco. Get it here>>>

International company news:


Sentiment around China is tough at the moment. A quick scan of the international headlines will make this clear, with a group like Alibaba looking to grow its eCommerce business unit (which services international buyers) at a time when the core Chinese operations are only managing sluggish growth. Of course, this isn't just because of low growth in China. There's also been an onslaught of competition, which makes it harder for the market leader to grow.

Keeping an eye on China is important, as growth in the region is a major driver of commodity prices. As a commodity-rich economy, we would be a beneficiary of improved fortunes in China.

Assuming the railways work and we can get the commodities to port, obviously.


Broaden your knowledge:


To understand the favourable conditions for alternative assets and whether they are set to continue, Dino Zuccollo of Westbrooke was the guest on the latest Magic Markets podcast. You absolutely don't want to miss it! Listen to it here>>>

Fedgroup explains that stability doesn't always have to come at a cost, with the group highlighting a strategy of fixed-term investments that can withstand a battering in the markets. Find out more here>>>

There's also a great new piece from Dominique Olivier that deals with popcorn, nostalgia and her love of the movies. With some fascinating information on the heydays of cinema, Dominique works through the current situation and whether cinemas can survive in the age of streaming. Read it here>>>

Have a great day and enjoy the rest of today's Ghost Mail!

Currencies, commodities and rates: TreasuryONE Market Update

Currency markets have drifted sideways with the US markets being closed. The Royal Bank of Australia is taking a more hawkish stance than previously anticipated and noted a strong case for hiking by 25bps, despite the final decision being to keep rates on hold. 

The bigger news is that the People's Bank of China declared that the five-year mortgage rate (the Loan Prime Rate or LPR) would be cut by 25bps to 3.95%. This is in an effort to address sluggish growth in China.

With the budget speech coming up tomorrow, you can watch this TreasuryONE video explaining the global interest rate conundrum and some of the key things to watch for the budget speech.

To get the post-budget insights you need, join the TreasuryONE team on Thursday morning as they are joined by special guests from ETM Analytics, Econometrix and the Centre for African Diplomacy at UJ. You can register for this event here>>>

The rand is at R18.96 this morning, gold is trading at $2,019 and Brent Crude is at $83.44. Platinum ZAR is trading at R16,956. The US 10-year yield is at 4.30%.