| Good morning Voornaam, Happy Friday! It feels like this was a big week for South Africans from all walks of life - and especially our famous golfers.
Retail turnarounds are difficult things. I've been pretty bearish on the Pick n Pay turnaround and I've cautioned many times that it won't be easy. The latest numbers are further proof, as Pick n Pay is still loss-making in its core business. Some of the progress in reducing losses is from a drop in net finance costs, which is a direct result of raising equity capital to reduce debt. But if they keep making losses, what do you think happens to that equity capital over time?
In the property sector, we have more evidence that focused funds are in vogue. Of course, you have to be focused in the right places, as you don't have the benefit of diversification to save you. For Shaftesbury in London's West End and for Spear REIT here in the Western Cape, a concentrated strategy is working.
Further financial news came in from Investec (a good opportunity to learn the term "jaws") and Life Healthcare (an equally good opportunity to learn about how "agterskots" can come back to bite you). In mining news, Tharisa released numbers from an interim period that they will want to forget as quickly as possible. Finally, Shuka Minerals (there's a new name for you) gave the market an update on its coal project.
Get the details on all these updates and the Nibbles in Ghost Bites at this link>>>
There's a new Magic Markets episode for you to enjoy. The recent US credit downgrade gave us a good excuse to talk about the dollar as reserve currency, while the JPMorgan investor day was an excellent opportunity to look at what the big dogs in banking are saying. Such is the quality of the JPMorgan management team that we opted to focus on finance boss Jeremy Barnum's insights instead of the more obvious choice of CEO Jamie Dimon! Enjoy it here>>>
In Unlock the Stock news, the most recent edition featured Astoria Investments. You can watch the recording of the management presentation and the Q&A at this link>>>
Greencoat Renewables is next up on Unlock the Stock. They are listing on the JSE as part of a fast-tracked secondary listing process. You can meet the management team on 29th May provided if you register here>>>
The team at DealMakers is taking a break at the moment, so that's it for today. Enjoy your Friday and we will see you on Sunday for Ghost Mail Weekender! |
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| SATRIX: A Day in the Life of a Portfolio Manager at Satrix |
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| | | Ever wondered how the nuts and bolts of ETFs work? What goes into index tracking and making sure that it is achieved at the lowest possible cost? And are all indices created equal from a complexity perspective?
Lauren Jacobs (Senior Portfolio Manager at Satrix) shows you what a day in the life of a portfolio manager looks like.
Get ready to learn and be inspired at this link>>> |
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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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| | | Pick n Pay is still a loss-making business. Positive jaws at Investec looks encouraging. Life Healthcare is also on the up, along with Shaftesbury and Spear REIT. Tharisa had a rough interim period. Shuka Minerals makes its market debut. Get the details in Ghost Bites>>> |
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| Unlock the Stock - ASP Isotopes |
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| In the 52nd edition of Unlock the Stock, ASP Isotopes joined the platform for the first time to give investors insight into the company before it lists on the JSE later this year. The recording of the management presentation and interactive Q&A is available at this link>>> |
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| DOMINIQUE OLIVIER - Sony's stuck in a Spider-Man spiral |
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| | | Sony, once a post-war electronics wunderkind best known for pioneering devices like the Walkman and the Trinitron TV, now finds itself tangled in a web of its own making – one spun not from copper wire or silicon wafers, but from red spandex and Hollywood contracts. Dominique Olivier explains why the IP around Spider-Man is so complex in this entertaining piece>>> |
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| INVESTEC PODCAST: Episode 100 - a world in flux |
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| | | From a global pandemic to fractured supply chains, energy shocks, inflation spirals, rate hikes, AI disruption, war, and geopolitical realignment - the last four years have been anything but dull. The 100th episode of No Ordinary Wednesday is a discussion on regional trends that will shape the years to come. Get the insights in this podcast>>> |
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| International Business Snippet: |
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| You may not have heard of Intuit, but I bet you've heard of Mailchimp and QuickBooks. Intuit has other products as well, including TurboTax which is huge in North America. It's a particularly interesting ecosystem of platforms and solutions that are used by plenty of SMEs and individuals.
The presence of the TurboTax business means that Intuit is incredibly seasonal, as they make most of their money around filing season. There are sometimes differences in when filing season ends each year, so you have to be careful of year-on-year growth rates. Still, they beat estimates for both revenue and earnings per share in the latest quarter, so that's positive. The share price closed 8% higher in after-hours trading, setting a new 52-week high in the process.
This week in Magic Markets Premium, we've covered Simon Property Group. The iconic US REIT is mainly focused on premium retail properties, which means that it's the pick of the litter when it comes to retail REITs in that market. But the first step is to decide whether you want such a pet in the first place. Are the risks to developed market retail property too great? As our subscribers will find out in the research, it's pretty 50-50 at thhe moment. |
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| Magic Markets: Mesh.Trade - Unlocking Private Markets |
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| | | Magic Markets: As the recent trend in IPOs and delistings on public markets tells us, an increasing number of companies are looking to private markets for their capital raising needs. This means that retail investors are being shut out of these opportunities, which is particularly problematic as these early-stage opportunities usually offer the highest potential returns.
Mesh.Trade is committed to increasing access for investors, which is why the platform is designed to enable issuers to raise debt and/or equity funding.
Connie Bloem joined us to talk about why access to good quality private assets is so important in the South African market. To learn more, listen to this podcast>>> |
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| Macroeconomic indicators and IG Markets macro update |
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| US stock index futures showed mixed but generally steady performance early Friday, with Dow futures moving higher, S&P 500 futures remaining flat, and Nasdaq futures trading slightly negative. There is cautious optimism in markets after China cited progress in ongoing trade talks with the US.
European stock futures were trading higher, supported by easing concerns about a global bond selloff and stabilizing bond markets. This followed earlier volatility that had weighed on investor sentiment across the region.
Asian stock benchmarks advanced on Friday, buoyed by a retreat in US Treasury yields and optimism over economic stability. Japan's Nikkei 225 and TOPIX each rose about 0.8%, despite Japan's core inflation hitting a two-year high of 3.5%, which raised expectations of a Bank of Japan rate hike later this year. Chinese markets outperformed for the week, with the Shanghai Composite up 0.5% and CSI 300 gaining 0.9%, helped by optimism around tariff de-escalation. Hong Kong's Hang Seng also rose 0.5% on Friday for a weekly gain of 1.1%.
The US dollar weakened on Friday, poised to snap a four-week winning streak against the euro and yen. This decline is driven by growing concerns over US fiscal health, particularly the rising $36 trillion debt and President Trump's proposed tax and spending bill, which could add trillions more to the deficit.
The rand is slightly firmer today and the JSE All-Share Index is expected to open flat, continuing to hover near all-time high territory. Globally, gold prices were slightly higher but remained rangebound amid mixed market signals, while oil prices fell on Friday, pressured by the possibility of increased crude output from OPEC+.
Key Indicators: USD/ZAR R17.90/$ | US 10yr 4.51% | Gold $3,330/oz | Platinum $1,103/oz | Brent Crude $64.08
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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