The week that was…
It’s been a phenomenal week for JSE investors with the All Share Index up over 5% for the week, meaning that it’s already outperformed 2020’s 4.1% annual return. The week’s gains have been led by the commodity counters, which have benefited from rising spot prices and a weaker rand. The majority of the heavy lifters within the Top 40 generate its earnings offshore, so a weaker rand is one of the driving factors behind the performance this week. Also, it’s been a general ‘risk-on’ trading week, with markets across the board performing well, especially emerging markets, underpinning investors optimistic views for 2021.
More worries for Naspers?
Alibaba and Tencent are both being put under regulatory pressures in the US and China. And although the Rand did weaken, that wasn’t enough for Naspers to outperform, as it primarily operates as a proxy to the Tencent share price.
Rebosis – the drama continues
It’s trading around 20 cents per share, meaning that its market cap is around R200m. So that’s around a 98% decline from its highs. This has been led by a large debt burden, as well as as issues within management. When it comes to Rebosis as an investment, it all depends on an investor’s risk profile.
Sasol continues to power higher
Investors are becoming increasingly optimistic that Sasol will avoid a rights issue. And if that is the case, there’s plenty of room for growth in the current share price.
