SA recorded another trade surplus in May of R54.6billion. This is the 3rd month in a row that the surplus has been above R50billion.
/ Gold a flat week after the previous weeks sell-off
/ S&P500 and Nasdaq back at all-time highs after the previous week's aggressive sell-off
/ Global shipping remains under severe pressure as Chinese port shut after a covid-19 outbreak
/ US gets an infrastructure bill, but maybe not. It’s messy
/ Omnia results paid special dividend and SARS dispute
/ Growthpoint trading update
/ Old Mutual to spin off third of their Nedbank holding
/ May CPI 5.2% with core inflation at 3.1%
/ +50s can register for vaccines from Thursday
/ Absa’s Q2 2021 Manufacturing Survey shows rising manufacturer confidence
The third wave of the pandemic in South Africa is so are very much a Gauteng issue as it records higher daily new cases above the peaks from the first and second waves.
This is no surprise to anybody. But what was notable is that lockdown restrictions remain very relaxed (albeit rumours that we'll see tougher restrictions soon). I had expected a harder lockdown for the third wave.
Expecting a harder lockdown I was very cautious on local hospitality stocks.
The Yoco small business turnover index shows activity at 78% of the levels pre-lockdown after hitting 128% at the end of May 2021. So even without harder lockdowns, we are being more cautious but this is still well ahead of the 40% odd we saw during the end of the second waves lockdown.
We also have some Stats SA data on occupancy in tourist accommodation. Here we're back at around 30% for the end of April and that's back where we were before the second wave arrived.
Hotels in South Africa recorded an occupancy rate of 26,8% in April 2021, up from 23,2% in March and 17,9% in February.
— Stats SA (@StatsSA) June 21, 2021
Airports Company SA (ACSA) data shows domestic travel picking up to around 60% of pre-pandemic levels. International is at around 15%-20% and regional around 25%-30%.
So in short this new wave is still early days and is hurting, but so far not as bad as I had feared (occupancy data is a month out of date). Certainly ahead of the third wave we were seeing improved tourist activity even if still below the pre-pandemic levels.
So what stocks to look at? I am not rushing in, but they're on a watch list for when we're past this third (and hopefully final) wave.
/ Markets spooked by FOMC statement
/ Gold under pressure
/ Brent crude slips but holding above $70
/ TikTok owner ByteDance reports $2.1bn loss
/ Krispy Kreme returning to market with IPO
/ Adobe results
/ Rand under pressure
/ Capitec expects half-year earnings to rise 292%
/ Sephaku update and PPC results
/ Mediclinic to produce own power
/ Alexander Forbes results, retrenchments almost back to ‘normal’ levels
/ Stricter lockdown
/ U.S. economy added 559K jobs in May and unemployment fell to 5.8%
/ G7 nations set the minimum global corporate tax rate at 15%
/ AMC issues shares above the current share price
/ Biden expands blacklist to 59 Chinese companies
/ Apple staff back to work 3 days a week, starting September
/ Volaris ups offer to AdaptIT to 700c
/ Sibayne Stillwater to buy back 5% of shares
/ SARB selling their stake in African Bank
/ Famous Brands results
/ Prosus to buy Stack Overflow of US$1.8billion
/ Mark Barnes sells up to half his Purple Group shares
[caption id="attachment_29849" align="aligncenter" width="888"] Fini15 ~ weekly[/caption]