The first quarter is over, and one of the major reporting seasons has come and gone. After the dust has settled, at first glance it seems as though the news is generally good. The All Share is up 11.5% and the Alsi40 is up 10.8%. Yet, looks are sometimes deceiving.
The duality was captured by veteran stock market analyst and Sasfin deputy chairman of equities David Shapiro, who in a tweet said the first quarter was turning out to be a disaster for “SA Inc” stocks. The market was up thanks to foreign giants: Naspers, BHP, BAT and Anglo American.But: EOH -64%, Tongaat -62%, Omnia -39%, Blue Label -33%, Aspen -31%, Mr Price -26%, Massmart -24%, Truworths -24%, Woolies -19%, Discovery -16% etc”. When you look at it that way, it’s a depressing list.
The second pillar is local stocks but which have such big foreign assets that the SA market is more a price taker than a price maker. The prime example here is Naspers, which is technically SA’s largest listed company, but which is really governed by its Chinese investment Tencent. But for the “SA inc” stocks, the quarter was really shattering. Many of the stocks have moved more in a quarter than they have in years.
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