And now ~ woe is Woolies while Pepkor cleans up in smart phones (#589)

 

Election Results Impact on Markets

• Slow ballot counting with three ballots, 18.7% counted.
• CSIR prediction at 5%: ANC 42%, DA 22%, EFF 9%, MK 14%, Patrick Alliance 2%.
• Market concerns about ANC forming a coalition.
• Rand fluctuations: From 18.34 on Tuesday to 18.61 currently.

[caption id="attachment_42259" align="aligncenter" width="849"] Rand | 1pm 30 May 2024[/caption]

Pepkor Results:

• 9.5% revenue growth.
• 24.5% growth in fintech, now 12% of the business.
• Pepkor sells 7 out of 10 smartphones in South Africa.

Woolies (Woolworths) Update:

• Earnings down 20% for the year ending June.
• Challenges in the clothing segment, further deterioration in footfall and discretionary spend.
• Food segment performing better, but overall market reaction negative.

Zeda Results:

• Revenue growth of 19%, HEPs up 12.5%, return on equity at 28.5%.
• Surprise 50 cents dividend despite previous year-end dividend expectations.

BHP Billiton and Anglo American Merger

• BHP walked away from the Anglo-American takeover proposal.
• Speculation about potential offers from Rio Tinto or Glencore.
• Anglo-American's disinvestment plans for De Beers and Anglo Platinum.

Market Insights

• Discussion on Metrofile's challenges with dividend yield falling and pressure on share price.
• SAB Cap Investments' exit from Metrofile.
• South African Reserve Bank MPC rate announcement: No rate changes expected.
• Upcoming central bank meetings: ECB, FOMC, Bank of England, Swiss National Bank.
• Potential for future rate cuts in South Africa if inflation targets are met.

Commodity webcast with Johann Erasmus available on Just One Lap.

• Insights into gold, PGMs, and copper.
• Mention of the cheaper gold ETF from 1nvest compared to Absa GLD.

Changes in 10X ETFs: Local Dividend Aristocrat and Smart Beta merging into a Top 50 ETF.

* I hold ungeared positions.