| Good morning Voornaam, Not all rainbows are created equal. This became clear on Friday, with the release of important results by both Rainbow Chicken and African Rainbow Minerals.
The funny thing is that in both cases, external factors are the primary influence. At Rainbow Chicken for example, the huge uplift in profits has been driven primarily by commodity pricing, load shedding (or lack thereof) and Avian Influenza (ditto). I don't doubt that the executives are doing their best to make hay while the rainbow is shining, but those things are out of their control. At African Rainbow Minerals, commodity prices are of course the biggest factor, with the group being the unfortunate owner of a platinum mine that has a high cost of production.
To add to this cocktail of news, we saw the effect of cost pressures at Exxaro and a solid interim period at Putprop, one of the smaller property funds on the JSE.
Get my analysis on all these updates (plus the Nibbles) in Ghost Bites at this link>>>
The next company to present on Unlock the Stock is HomeChoice, so be sure to register for free to engage directly with management this Thursday at 12pm.
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>>>
And by the way, if you fancy attending a gold webinar presented by my Magic Markets co-host Mohammed Nalla, you can still register for the Mesh Trade webinar happening this evening. Just click through to the Magic Markets podcast above for the details.
Finally, where does the future of shopping lie? Is it click, or brick? Or perhaps both? Dominique Olivier's latest column digs into recent eCommerce stats and trends. Be sure to give it a read here>>>
Have a lovely day! |
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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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| | | African Rainbow Minerals and Rainbow Chicken showed that not all rainbows are created equal. Exxaro faced cost pressures. Putprop had a strong period. Get the details in Ghost Bites>>> |
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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 - Click or brick: where does the future of shopping lie? |
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| | | Online shopping was supposed to take over the world - so why are more people demanding access to physical stores? The numbers tell an interesting story about the need for omnichannel strategies. 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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| In and amongst a busy week last week, we saw Broadcom put in a particularly strong jump on Thursday in response to results. It was a choppy week though, with the share price down 4% over 5 days. The broader Nasdaq-100 fell 3.8% over five days, so Broadcom ultimately tracked the market lower.
This is despite earnings that were ahead of analyst expectations for both revenue and EPS. When tech companies are beating guidance and still dropping in line with the market, you know sentiment has soured. This creates a particularly dangerous environment for any companies that miss earnings, as the punishment would likely be severe.
Given the jitters in the US at the moment, we decided to cover a European defence stock (not the spelling!) as our latest report in Magic Markets Premium. BAE Systems finds itself in an interesting position, with strong links into the US, European and allied military budgets. It's a better business than many of the continental Europe names, as reflected in the valuation. 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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| Despite Friday's recovery from intraday lows following weaker-than-expected payroll data that suggested a more dovish Fed outlook, US equity futures are trading lower this morning. Investors are increasingly concerned about recession risks as trade war narratives continue to dominate market sentiment.
Chinese and Hong Kong equities declined Monday as deflationary pressures intensified worries about China's economic recovery. February's consumer price index fell at its sharpest pace in 13 months, missing expectations, while producer price deflation persisted. The disappointing data reflects fading seasonal demand and consumer caution amid employment and income uncertainties, all against the backdrop of heightening global trade tensions.
European bourses are showing relative strength in early trading, outperforming global peers. This positive performance is supported by expectations of additional fiscal stimulus in Germany, which policymakers are scheduled to discuss this week. The prospect of increased government spending has bolstered investor confidence in the region.
On balance we are expecting a flat to slightly lower start for the JSE All-Share Index this morning, while the rand is trading slightly weaker.
The US dollar and Treasury yields remain near recent lows as markets increasingly price in multiple Federal Reserve rate cuts this year. The softening economic data has reinforced expectations for a more accommodative monetary policy stance in the coming months.
Oil prices are edging lower in today's trading session, while gold continues to trade sideways, hovering near its all-time high as investors maintain positions in safe-haven assets amid economic uncertainty.
Key Indicators: USD/ZAR R18.28/$ | US 10yr 4.28% | Gold $2,910/oz | Platinum $977/oz | Brent Crude $69.87
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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