Happy Friday! You've made it.
Today's major update is from Reinet, Johann Rupert's investment vehicle that has chosen to sell its stake in Pension Insurance Corporation at a discount to the recent NAV. This comes soon after selling the British American Tobacco stake. Reinet is going to have so much cash next year that Rupert might need to seriously consider sleeping with his doors locked again. Don't tell Trump.
Hudaco released interim results and dedicated most of the narrative to complaining about South Africa. This just isn't good enough. If you're paying out only a third of interim profits as a dividend, then you need to justify why you're retaining two-thirds of profits for investment purposes. I'm afraid that blaming macro conditions for lack of revenue growth just doesn't cut it, as capital can be allocated anywhere - just look at the likes of Invicta, for example.
For positivity around South Africa, you can look at Capitec instead. The company's credit rating has been affirmed by S&P with a positive outlook. But more than that, S&P had some very interesting things to say about SA banking as a whole.
Finally, Alphamin had a much better time in Q2 after the security issues that ruined the end of Q1 and the start of Q2.
Get all the details you need on these updates in Ghost Bites at this link>>>
The team from DealMakers is here to finish off your week with the latest from the corporate finance industry. The usual summaries of local M&A, local corporate finance and African deals are here. There's also a piece on South Africa's competition landscape (a major challenge in dealmaking), as well as M&A opportunities in Kenya.
The latest Magic Markets podcast is a fun show on commodities. Not only did we talk about the usual suspects like platinum and gold, but also the softs - including the cheese spread! Yes, really. Enjoy it here>>>
As you look ahead to your diary next week, be sure to make time for Unlock the Stock on Thursday at 12pm. PBT Group will be joining us once again to talk about their recent results and the prospects for the business. Attendance is free, but you must register here>>>
Have a great day and we will see you on Sunday for Weekender! |
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SATRIX: The liquidity advantage - why ETFs should play a bigger role in institutional asset allocation |
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| | Institutional investors are increasingly incorporating Exchange Traded Funds (ETFs) into their portfolios, attracted by their cost efficiency, transparency, and liquidity. As the investment landscape becomes more complex and cost-sensitive, ETFs are proving to be a powerful tool for modern portfolio management.
Duma Mxenge explores their growing role in institutional investing, advantages over traditional investment vehicles, and their impact on market liquidity and institutional strategy.
Enjoy this piece at this link>>> |
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GHOST WRAP: The JSE Winners' Club in 2025 |
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| | At the halfway mark in 2025, we've lived through some huge geopolitical shifts. The world's gaze has shifted beyond just the US market.
Many investors choose to stick with what they know in times like these. This means homegrown favourites on the JSE.
But which stocks have been the big winners thus far this year, and what do they have in common?
Enjoy it here>>> |
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PODCAST: Capital Markets in South Africa - the Think Big South Africa Competition |
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PSG Financial Services is the proud sponsor of the Think Big South Africa competition, in collaboration with Economic Research Southern Africa (ERSA).
PSG wants to encourage South Africans to get involved in their country at the highest level, bringing forward policy ideas and constructive solutions to drive conversations and real change in our country. PSG CEO Francois Gouws joined me to explain why they are such strong supporters of this initiative.
Enjoy it here>>> |
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GHOST BITES - Making sense of SENS on the local market |
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| | Reinet is selling Pension Insurance Corporation. It's too easy for Hudaco to blame the macro conditions. Alphamin had a much better quarter. Capitec's credit rating comes with a positive story about South Africa. Get the details in Ghost Bites>>> |
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Unlock the Stock - Tharisa |
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In the 56th edition of Unlock the Stock, Tharisa returned to the platform to talk through their recent numbers and strategy in the PGM and chrome market. The recording of the management presentation and interactive Q&A is available at this link>>> |
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DOMINIQUE OLIVIER - The catch that's catching up with us |
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Beneath the waves, a silent collapse is underway. As fish stocks dwindle, so do the jobs, meals and communities built around them. But it’s not too late for us to make a meaningful change. Dominique Olivier explains how to balance conservation with people whose livelihoods depend on the ocean. Read it here>>> |
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INVESTEC PODCAST: No Ordinary Wednesday - tensions, tariffs and the fragile global economy |
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| | At the midpoint of 2025, the global economy stands at a precarious intersection of cooling inflation on one side and rising geopolitical tensions on the other. In this episode of No Ordinary Wednesday, Jeremy Maggs speaks with Investec Chief Economists Annabel Bishop (South Africa) and Phil Shaw (UK) about the shocks and signals shaping markets. Enjoy it here>>> |
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International Business Snippet: |
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There's no shortage of optimism in equity markets at the moment, evidenced by unusual highs like European banks. Barclays and Deutsche Bank are trading at levels not seen since the initial recovery after the Global Financial Crisis, back when investors still thought that banking outside of the US could be lucrative.
Much of the enthusiasm in those share prices relates to investment banking activity, which implies dealmaking in regions other than the US where the Wall Street names clean up. This narrative of growth outside of the US seems to be gaining momentum.
In Magic Markets Premium this week, our subscribers got to enjoy our work on FedEx. Sitting right in the cross-hairs of the trade war, particularly given the focus on global trade with a US leg, there's much to learn from FedEx. The entire research library in Magic Markets Premium is available for just R99/month. |
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Magic Markets: Insights from five global companies |
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| | In this episode of Magic Markets, Mohammed Nalla and The Finance Ghost decided to each choose three companies from the recent research in Magic Market Premium, with the goal being to discuss some of the most interesting insights that came out of each one.
Both chose Berkshire Hathaway (predictably), so there were actually only five companies to discuss. Luckily, this left more than enough meat on the table. This podcast highlights some of the best insights from research into Berkshire Hathaway, BAE Systems, 3M, Waste Management and Alibaba.
Enjoy it here>>> |
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Macroeconomic indicators and macro update |
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European futures are pointing to a slightly negative start today as markets temper some of yesterday’s gains, with trading volumes expected to be light on account of US markets being closed for Independence Day.
Chinese stocks have inched higher this morning, led by the banking and steel sectors, boosted by signs of easing trade tensions between China and the US.
The US Dollar Index briefly pushed above 97 yesterday, supported by strong June jobs data and reduced expectations for imminent rate cuts, but it was unable to maintain the momentum. The dollar continues to face downward pressure amid ongoing concerns over tax policies, tariffs, and key economic data.
Gold has strengthened to around $1,340/oz, supported by a softer dollar. The anticipated $3 trillion-plus impact on the US deficit from recent tax and spending bills, combined with tariff risks, has increased gold’s attractiveness as a safe haven once again.
Oil prices remain near short-term lows, weighed down by speculation that OPEC+ may raise output at their upcoming meeting.
The South African rand has rallied to its strongest levels since late 2024, benefitting from a weakening dollar, higher gold prices, and improving local political sentiment.
This update is provided by Shaun Murison. Connect with him on LinkedIn here.
Key Indicators: USD/ZAR R17.57/$ | US 10yr 4.35% | Gold $3,338/oz | Platinum $1,396/oz | Brent Crude $68.54 |
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