Strong Retail Sales and the Two-Pot System:
- Retail sales show a positive trend, rising 3.2% in August, exceeding expectations of 2.1%.
- The Two-Pot System has already released R20 billion in six weeks, with the money used mainly for paying down debt, saving, and spending.
- Retail sales recovery, though from a low base, is a strong indicator of improved consumer health due to factors like slightly lower interest rates and inflation.
South African retail sales | YonY
Tribute to Tito Mboweni:
- Simon reflects on the passing of Tito Mboweni, former Finance Minister and Reserve Bank Governor.
- Mboweni’s contributions include institutionalising the Reserve Bank’s MPC meetings and implementing key labor reforms during his tenure as Labor Minister.
- His lasting impact on the country’s economy and financial sectors was highlighted, along with his personality as a Twitter chef and self-styled “Duke of Magoebaskloof.”
Johnson & Johnson* – A Smooth Dividend Play:
- Simon shares his reasons for holding Johnson & Johnson: consistent dividend growth (around 3% yield) and a steady 8% annual share price growth in US dollars.
- Despite some issues, the company offers reliable long-term returns in a competitive health and consumer space.
Johnson & Johnson quarterly dividend payments
Bytes Technology Group and Investment Opportunity:
- Bytes operates in the UK, offering hardware, software, and services. The stock showed mixed market reactions but has strong support around certain levels.
- With a forward P/E of 20 and a dividend yield of 3.6%, Simon sees it as an interesting opportunity for long-term investors in the tech space.
Quilter Trading Update:
- Quilter’s strong Q3 results follow a good first half of the year, with significant inflows supporting future earnings.
- A solid financial services player with a dividend yield near 4% and a forward P/E of 15, Quilter is performing well and trading at all-time highs since its 2018 listing.
Sasol – A Weak Chart:
- Simon discusses Sasol’s ongoing struggles, with a weak chart suggesting possible further declines.
- Investors should wait for technical indicators before making any moves.
Brent Oil Price and Rand Volatility:
- Brent crude oil hit highs recently but is now retreating to $70 per barrel, with potential for further declines due to global oversupply.
- The rand, affected by dollar strength, is volatile but could see a return to 16.80 against the dollar in the coming months.
Chapters
00:00 Retail Sales Recovery and Economic Outlook
04:29 Tribute to Tito Mboweni
08:32 Johnson & Johnson: A Steady Investment
09:52 Bytes Technology Group: Market Reactions
12:32 Quilter’s Strong Performance
14:29 Cecil’s Ongoing Struggles
15:56 Brent Oil Prices and Global Economy
17:48 Volatility of the Rand and Market Predictions
All charts by KoyFin | Get 10% off your order
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.
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.
Contact Simon
More about Simon
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.
