Full circle for Balwin
Good morning {{first_name}},
Welcome to a new week! If you’re rubbing tired eyes after the football last night, then I’m sorry that you only got to see one goal (and one red card) for all that effort. I focused on a different application of red instead, with a very exciting Formula 1 race at Spa-Francorchamps. It’s so good to see Ferrari fighting at the front again!
We love sport in South Africa. We also seem to love having really high interest rates. With the SARB MPC due to meet in the coming days, will we see a change to our rates? To help you understand the underlying consumer data in these deliberations, you can enjoy Jeremy Maggs in conversation with Investec Chief Economist Annabel Bishop. Investec’s No Ordinary Wednesday is a worthwhile podcast to add to your schedule.
You can also give yourself a break from the markets by reading Dominique Olivier’s excellent piece on Bastille Day and where it gets celebrated in the world. From gunpowder to guest houses, it’s incredible how yesterday’s revolution becomes today’s excuse to have a jol.
As you plan your week, make time on Thursday to join us on Unlock the Stock with PBT Holdings. Their recent numbers were rather impressive! You can watch the management presentation and participate in the Q&A if you attend the live event. Register here.
Ghost Bites - making sense of SENS
Balwin has come full circle. After being founded 30 years ago and listing 11 years ago, they are now on their way back to being a private company. This is a story arc that is far too common in South Africa. And as you’ll see in a share price chart since listing, this is another cautionary tale about the dangers of buying IPOs in hot markets.
Other stories in Ghost Bites:
Argent Industrial is buying a UK-based business for R238m.
Capitalworks is almost fully out of Premier
Mantengu agreed terms for the Blue Ridge Platinum disposal
Ninety One has shown strong growth in AUM
Valterra Platinum’s numbers need a careful read
Results of the latest poll:
The latest poll sends a pretty clear message to Prosus. Ghost Mail readers would like to see the Delivery Hero proceeds applied to share repurchases rather than reinvestment in the “ecosystems” operated by the group. At the current share price, I’m not surprised to see this.
Enhance your market and business knowledge
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Tourism is one of the most important sectors in South Africa, yet there are only a handful of stocks on the JSE that operate in this market. In this podcast, we take a look at the broader global story by touching on a number of international and local names.
If there are skeletons in the closet, you want to find that out before you own the closet. Learn all about the process of a corporate due diligence in this podcast - including the benefit of having a coordinated team across financial, tax and ESG workstreams.
Volatility feels like risk. The daily noise and uncomfortable drawdowns are the stress points that make it hard to be an investor. But what if the real risk was avoiding the markets altogether, rather than managing the bumps? Kingsley Williams explains.
Global markets update with Shaun Murison
Traffic through the Strait has slowed severely as the Middle Eastern war rages on, with the US now entering its ninth consecutive day of bombing. Oil prices have in turn continued to rise.
After last week's selloff in tech, notably semiconductor stocks, this week sees the release of Alphabet and Intel results under close scrutiny. Expectations are high in the AI related and linked tech space, as are valuations.
US futures markets are mixed, with the Dow marginally lower, the S&P 500 flat and the Nasdaq tentatively higher in early trade.
Asian equity markets trade mixed this morning too, with China, Hong Kong and Japan firmer, Taiwan flat and South Korea lower.
The dollar has eased a bit this morning, helping a fragile rebound in precious metal prices.
The rand is slightly firmer against the greenback, and we expect a flat to slightly higher open this morning for the JSE All Share Index.
This update is provided by Shaun Murison, Senior Market Analyst at randswiss.com. Connect with him on LinkedIn here and follow him on X here.
Key Indicators:
USD/ZAR R16.56/$ | US 10yr 4.57% | Gold $4,006/oz | Platinum $1,597/oz | Brent Crude $84.52