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Finweek - English

Finweek - English

11/5/2020

Finweek is South Africa’s leading financial weekly magazine focusing on investment. With its brisk, creative and authoritative analysis of business and investment issues, it’s an essential business tool in the daily battle for competitive advantage. Today's business decision-makers have to cope with increased pressure on their time and are expected, more than ever before, to succeed in the face of stiffer competition. Finweek provides relevant information in quick bytes, along with award-winning investment advice.

Land:
South Africa
Taal:
English
Uitgever:
Media 24 Ltd
Verschijningsfrequentie:
Biweekly
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25 Edities

in deze editie

1 min.
double take

THE GOOD Cabinet approved measures to support the domestic ferrochrome industry, including through an export tax on chrome ore. Jackson Mthembu, minister in the presidency, said interventions also include the usage of energy-efficiency technologies in smelters, and the adoption of cogeneration and self-generation technologies. Last year, South Africa supplied 12.5m tonnes of chrome ore to China, which accounts for 83% of China’s total chrome imports, according to Reuters. Companies that mine and process chrome in SA include Glencore, Merafe Resources, Samancor Chrome, Tharisa, and Jubilee Metals (also see p.12). THE BAD SA’s consolidated fiscal deficit is set to widen further than projected in June’s emergency Covid-19 budget as a third-quarter rebound in economic growth will not boost tax receipts enough, a Reuters poll found. A median of 21 economists, polled between 15 and…

3 min.
outdated notions of beneficiation won’t cut it

one proposal that might bail out South Africa’s ferroalloys industry is that Eskom agrees to a long-term power purchase framework in which there is tariff relief in return for smelters reducing consumption during peak demand periods. Ferrochrome and ferromanganese production consume base load power ‘when people are sleeping’, but it will vanish at the current rate of inflation. According to the Minerals Council of SA, electricity tariff hikes have culminated to about 500% over the last decade. In the meantime, the government has papered the cracks with an export tariff that would charge mainly Chinese buyers more for chrome ore – the stuff ferrochrome producers put in a furnace to make the higher-value ferrochrome, used in the fabrication of stainless steel. China buys about 85% of its chrome ore requirements for smelting in…

1 min.
ending its long-term bear trend

private higher education company, Stadio, controlled by PSG, said in August that its student numbers jumped 10% during the fiscal year through 30 June while its revenue rose 15% to R468.2m. However, the group has swung into a R78m loss from a profit of R52m previously, due to write-offs of existing brands as it shifts to a single brand under the name Stadio. Outlook: Stadio’s share price held at 75c/share and although it’s trading sideways, its bullish 3W RSI is suggesting that the bulls are returning. On the charts: Stadio has breached the resistance trendline of its long-term bear trend and is currently trading between 200c/share and 75c/share. If support holds firmly at 115c/share, a positive breakout would be in the offing and Stadio would embark on a new bull trend. Go long:…

4 min.
choosing your investment vehicle

the world is rapidly changing and now may be the time to seriously re-examine your approach to asset allocation, according to Philip Bradford, Sasfin’s chief investment officer and multi-award-winning portfolio manager. He points out that during the 1980s, interest rates in the US, UK and Europe were mostly between 10% and 20%, and currently they’re zero or even negative. Locally, they’re close to their lowest in history and seem destined to remain there for some time. Over that same period globally, stock markets generally did well, with the JSE being one of the best performers in the world, he adds. And significantly, despite recent poor performance, it remains one of the top performers over the past 120 years. Bradford notes further that the US stock market, after delivering zero returns from 2000 to…

4 min.
the pps global equity fund

in the current market conditions, offshore investing has become vital in diversifying your investment portfolio, as it offers an opportunity to adequately benefit from a greater investment universe. When you have offshore exposure, it means that you’re spreading your risk – or diversifying – geographically. Diversification across different asset classes, asset managers, geographical locations or investment strategies means that at any point in time you have exposure to an element in your portfolio that, when optimally combined, should act in a complementary way. Your portfolio is therefore betterable to withstand fluctuating market conditions, creating smoother returns over the long run. But investing offshore can be a difficult landscape to traverse with various ways to do so. Some of the common approaches are through opening an offshore bank account, or investing in…

7 min.
simon’s stock tips

BALWIN PROPERTIES Residential boost Balwin Properties’ results show a tough six months to 31 August as it struggled to operate during the lockdown and headline earnings per share slumped by 56%. The company did, however, declare a dividend of 19.6c/share, showing confidence from the board as far as cash flow is concerned. Balwin also finds itself well positioned with the surge in demand for home sales in the market below R1.5m on the back of the decades-low prime lending rate of 7%. The company has several estates underdevelopment and while some of them are at higher price points, there has been improving demand and I think Balwin will likely see continued increases in sales. It will manage this increased demand by ramping up construction and while fora long time I preferred Calgro…