TreasuryOne Market Wrap – 9 May 2022
Unlock the Stock: Afrimat and Spear REIT
Afrimat’s track record is spectacular. Spear REIT is a highly respected property fund. On Unlock the Stock, you can learn about both companies.
RCL is far more than just a chicken business
RCL is far more than just a chicken business these days, which isn’t a bad thing.
Bidvest: strong trading profit growth in every division
Bidvest closed 3.8% higher after releasing results for the six months to December 2021.
Liberty Two Degrees: reversions continue to bite
Liberty Two Degrees holds stakes in some of the most iconic properties in the country
Alviva: 20% revenue growth excl. Tarsus
After teasing the market with a trading statement, Alviva has now released all the details of the interim results for the six months ended December 2021.
PSG Group and the Great Value Unlock
This is one of the biggest news stories on the JSE that we’ve seen in a while
JSE Limited: a cash cow in a shrinking field
You may not be aware of this, but the JSE Limited is listed on the JSE. You’re right in thinking that this sounds like the financial version of the movie Inception
Capital Appreciation on the deal train
The company has announced the acquisitions of three technology companies in South Africa and a 20% stake in a company in the Netherlands.
Woolworths won’t miss 2021
as released results for the 26 weeks to 26 December 2021. The share price rallied 6% despite a fair share of negative commentary on Twitter.
Cashbuild’s negative sales momentum continues
Cashbuild released its interim results for the six months ended 26 December 2021
Rand Update
We do see riskier assets on the back foot today, with EM’s and stock markets falling further due to the pressure placed on the market by the hawkish Fed. The rand did trade at its highest point for the year, touching the R16.27 level briefly earlier today, and is currently down 1.4% for the day. The sustained strength we see in the dollar is still the key driver, with prolonged tensions in eastern Europe and a slowdown in the Chinese economy both adding fuel to the fire.
Commodity Update
As mentioned, the slowdown in the Chinese economy still plays its part in the markets, with the commodity sector affected the most. Gold is down 1.2% for the day and trades at $1,860 at the moment. Platinum is down 1.4%, while palladium is the only shining star in the metal sector. Palladium which was under immense pressure last week, is currently up 2% for the day but still well below levels we have seen over the past month. Oil futures are also being sold off today, with Brent Crude trading 3.5% lower on the day. The current levels of Copper are some of the best we have seen in a long while and could provide an opportunity for hedging in this market.
International Update
Dollar strength has been on the tip of everybody’s tongue as more and more interest hikes are being priced in. US Treasury yields are still trading at recent long-term highs, with the 10yr quoted at 3.10% while the 5yr reached 3%. The euro and pound are still treading water, with both majors down 0.25% for the day. Stock markets have taken a beating in today’s trading sessions, and since the open, we see all US indexes down. The Nasdaq is currently trading 2.9% softer while the S&P 500 is 2.2% in the red. We can expect most markets to play second fiddle to the dollar for now, with the market trend remaining long dollar.
