I really wanted yesterday to be a better day. It wasn't. I suspect a lot of people researched SASRIA yesterday and how the insurance cover works for riots.
Amidst this chaos, I know you are seeking information from credible and objective sources. Thank you for choosing to read InceConnect this morning. I certainly strive to be an analytical and sensible voice in the noise and the darkness.
The biggest loser on the JSE yesterday was Massmart, down -7.5%. The company relied heavily on Walmart's support last year to survive Covid without needing a rights offer. With the warehouse in Durban looted and stores destroyed, one wonders how much more pain the Americans are willing to take.
I personally cannot understand why they didn't take it private last year. Walmart is putting so much effort into saving that group, yet minority shareholders are being allowed to come along for the ride. If I was advising Walmart, I would've suggested an opportunistic take-private followed by a full clean-up once out of the public eye. Capitalism isn't a popularity contest unfortunately.
I made a lot of money from Massmart over the past 12 months. I sold out a couple of weeks ago. It was possibly the luckiest trade of my life, based on recent events.
Other major drops on the JSE included property fund Vukile (-7.1%), Mr Price (-5.9%), Truworths (-5.4%) and Pepkor (-5.4%). The banks also took a hiding, with the four biggest banks all registering drops of around -5%. Inexplicably, Capitec only dropped -2.8%.
Perhaps the thesis is that borrowers who got free TVs and
