BROKERS’ NOTES: Buy banks, sell energy stocks

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Zwelakhe Mnguni of Benguela Global Fund Managers on what the smart money is doing.

probably still be keen on banks; I think the environment has kind of normalised — the effects of Covid are out of the way now and we should start seeing them showing meaningful growth in profitability, and growth opportunities. I would probably go for FirstRand first, and then Standard Bank.SELL: Energy stocks

On the sale side I’d look at the energy stocks: companies like Thungela Resources, Kumba Iron Ore and Exxaro. They have enjoyed a meaningful performance in the underlying commodity prices and there’s more downside than upside at this point. The problem is that in a sell-off, the numbers always get exaggerated on the downside. When there is a correction, what tends to happens is there’s panic and the share prices follow suit; there will probably be better opportunities to buy them later.

 

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BROKERS’ NOTES: Buy banks, sell energy stocksZwelakhe Mnguni of Benguela Global Fund Managers on what the smart money is doing.
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BROKERS’ NOTES: Buy banks, sell energy stocksZwelakhe Mnguni of Benguela Global Fund Managers on what the smart money is doing.
Source: FinancialMail - 🏆 20. / 63 Read more »