Market Updates:
- Recent news on Markus Jooste’s fine and tragic passing prompts reflection on justice and mental health awareness.
- Telkom’s sale of its towers business for R6.75 billion highlights strategic shifts and potential opportunities in the telecom sector.
- Ongoing rise in oil prices raises concerns about inflationary pressures and global economic impacts.
Market Analysis and Insights:
Gold’s Surge:
- Gold prices hit new all-time highs above $2200, reflecting investor concerns and market sentiment following Jerome Powell’s recent statements on inflation and monetary policy.
- Gold mining companies show varied responses, with Pan-African, Goldfields, DRD, and Anglogold Ashanti experiencing gains.
Interest Rates and Economic Outlook:
- Powell’s announcement of no immediate rate cuts and a projected total of three cuts for the year signals a cautious approach towards inflation.
- Rising interest rates pose challenges for companies with significant debt burdens, while those with ample cash reserves stand to benefit.
Inflation and Monetary Policy:
- CPI data reflects higher-than-expected inflation rates, prompting speculation about potential rate cuts in South Africa and implications for economic recovery.
- Abenomics, Japan’s economic policy experiment, demonstrates the effectiveness of unconventional monetary measures in stimulating growth and combating deflation.
Company Updates and Reflections:
Remgro Results:
- Remgro’s net asset value growth raises questions about the effectiveness of its management strategy, despite trading at a significant discount.
Remgro has grown its NAV per share by 5% p.a. since 2010.
Over the same period, the ALSI TR index has done 12% p.a.
If you expect this underperformance to continue (and nothing in their recent capital allocation decisions indicates otherwise), then a fair discount to NAV is…— Piet Viljoen (@pietviljoen) March 19, 2024
- Contrasting performance with Sabvest Capital highlights the importance of superior returns and effective capital allocation in investment decisions.
Sun International:
- Strong financial results from Sun International underscore challenges and opportunities in the leisure and hospitality sector, amid shifting consumer behaviors and economic uncertainties.
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JSE Direct is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.
Thursdays are all about hard-core investing and trading with Simon Brown’s famous JSE Direct podcast. JSE Direct started life on ClassicFM in July 2008 and became a podcast in 2011. Every week Simon shares his views on the state of global economies, individual shares and events moving markets.
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JSE – The JSE is a registered trademark of the JSE Limited.
JSE Direct is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.
