I’m not sure how many readers are feeling particularly bullish at this juncture, what with Trumpian utterances rocking the US markets, crypto market ructions and some fraught fiscal filibustering locally.
But the JSE is — at least at the time of writing on March 19 — presenting a most buoyant chart.
The JSE’s all share index has calmly traipsed through the 90,000-point level and is trading at a record high. That’s only half the story, though. Once again, a few selected large stocks have ensured a flattering showing.
I’m sure investors holding local retail, banking, financial services and general mining stocks are feeling less ebullient. The banks — aside from Standard Bank — are all down, and the popular retail segment is a mixed bag. Large mining stocks also don’t offer much solace at this point, but I have a sneaking suspicion these might be offering some good value at this juncture.
The big drivers on the JSE have been the large international listings, some of which — most notably Prosus and AngloGold Ashanti — have registered record highs. Other strong performers would include luxury brands group Richemont and AB InBev, both up over 20% this year. Even British American Tobacco is managing a reassuring slow burn, rising 12% in the first 80 days of 2025.
Possibly the mood of local investors is reflected in the latest edition of IM. I don’t think I have seen as many sell recommendations on stocks covered in any previous edition. That said, the smart money will no doubt be buying when local stocks start showing good value.
The prime movers at investment group African Rainbow Capital (ARC) recently showed their intent by pitching a buyout offer on a portfolio that owns promising and coveted assets such as specialist telecoms business Rain and fast-growing digital bank Tyme (which has operations locally and abroad).
With discounts on investment companies stretched well past 40% on intrinsic NAV, I won’t be surprised — if the cynicism lingers longer — to see a couple more pitches to take counters similar to ARC private.
I guess I am hoping that ARC shareholders — who wanted access to Rain and Tyme (and a few other interesting assets) — will kick up enough of a fuss for the delisting plans to be abandoned. That, I suppose, is wishful thinking.
The cynicism reserved for investment counters is even in evidence at Ethos, where the company is in the throes of winding down its portfolio. This is despite the fact that certain investments have been sold at better prices than indicated in the portfolio register.
I certainly hope Ethos concludes its tenure by offering its shareholders options to retain interests in Optasia, one of the more promising fintech businesses that should make a splash when listed offshore and on the JSE.
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