Simon’s weekly wrap: Change management modifications, stunning outcomes and hope for maize


The massive story throughout Twitter this previous week was changes to exchange controls, with the 30% international funding cap successfully lifted in sure circumstances and international exchange-traded funds’ (ETFs) home property reclassified. Nerina Visser of etfSA says whereas the Reserve Financial institution has modified rules on inward-listed devices, the Monetary Sector Conduct Authority has not and as such the previous Regulation 28 restrictions stay in power. They’ll seemingly be modified, in time, however she doesn’t suppose 100% offshore will likely be allowed.

The Brait interim results present a internet asset worth (NAV) of virtually double the present share value, with many disputing the calculation. I requested Chantal Marx of FNB Wealth and Investments if this gives a possibility for traders and he or she is of the view that whereas the restoration will likely be rocky, there may be worth in Brait’s NAV, particularly in mild of all of New Look being written right down to zero.

Stor-Age’s* interim results present that not solely does it have a recession-resilient enterprise mannequin, however a pandemic-resilient one too. Good outcomes noticed the dividend fall a little bit after dilution as a result of capital increase earlier within the 12 months, however aside from that each one metrics trended increased. Additionally it is shifting into the final mile of e-commerce supply and doing very properly with small companies that have a tendency to make use of extra space and keep for longer.

The southern hemisphere is anticipating La Niña in early 2021 and this implies increased rainfall than regular. I requested Wandile Sihlobo of Agbiz if this may assist farmers with a possible bumper crop and he agrees it is extremely potential. If this occurs maize costs will fall and hen producers, resembling Astral Meals, will profit as maize is one among their bigger enter prices.

Additionally this week:

Kruger Worldwide’s Mia Kruger talks markets because the Moderna vaccine is introduced; Tsogo Solar Accommodations CEO Marcel von Aulock discusses outcomes after six months of lockdown; and Octodec MD Jeffrey Wapnick discusses its full-year outcomes and deferred dividend.

*The author holds shares in Stor-Age