BizNews Briefing – No stopping Bitcoin? SA Equities in focus, Boxer listing & Wilgenhof update.
In today's BizNews Briefing, Bronwyn Nielsen delves into South Africa's equity landscape with Charl de Villiers from Ashburton, who shares the strategic shift toward local equities and the untapped value in mid-caps. The discussion extends to Nicky Newton-King, former JSE CEO and Stellenbosch University Council chair, as she addresses challenges at Wilgenhof, her views on navigating change, and reflections on the broader economic sentiment in South Africa.
Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.
The seventh BizNews Conference, BNC#7, is to be held in Hermanus from March 11 to 13, 2025. The 2025 BizNews Conference is designed to provide an excellent opportunity for members of the BizNews community to interact directly with the keynote speakers, old (and new) friends from previous BNC events – and to interact with members of the BizNews team. Register for BNC#7 here.
Watch here:
Listen here:
Summarized transcript of the Briefing:
Bronwyn Nielsen (01:55)
Good morning. You're watching the BizNews briefing. It's Tuesday, November 12th, and I'm Bronwyn Nielsen, filling in for Alec Hogg. We've got a packed show for you today. First, we'll discuss the South African equity market with Charl de Villiers, Head of Equities at Ashburton. Later, we'll chat with Nicky Newton-King, former CEO of the JSE, who is currently the Chair of Stellenbosch University's Council. She'll provide an update on the ongoing Wilgenhof issue.
Before diving into that, let's look at international markets. The S&P 500 and Nasdaq closed flat, but Bitcoin is making headlines, approaching $90,000. Alec Hogg will discuss this with Bitcoin expert Stafford Masie on Thursday. The Dow Jones closed over two-thirds of a percent higher. Locally, the JSE Top 40 fell nearly half a percent, with resources being the major losers, down over 2.6%. Industrials showed a slight gain, while financials were marginally down.
Bronwyn Nielsen (03:47)
Some standout gainers yesterday included Woolworths, up nearly 4.5%, and Karoo, continuing its upward trajectory with a 3% gain. British American Tobacco rose 2%, while Investec led the financial sector. On the downside, resources struggled, with Gold Fields down nearly 6%, and AngloGold and Sibanye Gold each losing about 4%. Vodacom also dropped by just over 3%.
Bronwyn Nielsen (06:36)
Now joining me is Charl de Villiers, Head of Equities at Ashburton. Charl, we're steering clear of a deep dive into Bitcoin today, but it's hard to ignore its current surge. What's your take on digital assets?
Charl de Villiers (07:07)
Bronwyn, I tend to leave crypto assets to the more daring speculators. I focus on equities—tangible assets with cash flows that we can analyze and understand. While there's a place for Bitcoin in some portfolios, it's not an area I'm eager to dive into.
Bronwyn Nielsen (07:53)
Understood, Charl. Let's pivot to equities. You've made a bold move by focusing entirely on South African equity allocations, especially when many have been diversifying offshore. What led to that decision?
Charl de Villiers (08:37)
We officially shifted to a 100% South African equity allocation in early 2024, but even before that, since taking over the fund in 2021, we had been primarily focused on local equities. Our team of five has deep expertise in the JSE, and we believe that's where we add value for clients. We've had little offshore exposure and still delivered strong returns, even against funds with more global diversification.
Bronwyn Nielsen (10:15)
You also focus on mid-cap stocks, which are often under-researched but can offer substantial value. Can you share some examples from your portfolio?
Charl de Villiers (11:05)
Absolutely. Our top positions are in mid-caps like Hudaco, Wilson Bayly Holmes, PPC, and Datatec. These stocks offer great value. For instance, Hudaco has been a long-term hold for us, but we rotate out when it reaches our target valuation. Recently, we've seen strong performance from companies like Raubex and Altron, especially with Altron's FinTech and Netstar divisions driving growth.
Bronwyn Nielsen (14:37)
Turning to another topic, the upcoming Boxer listing on the JSE set for November 28th—what are your thoughts?
Charl de Villiers (15:04)
It's encouraging to see new listings like Boxer, especially given the trend of JSE delistings. Boxer's clean business model could attract both local and international investors, especially given the struggles of competitors like Pick n Pay and SPAR.
Bronwyn Nielsen (18:16)
Thank you, Charl. Now, we turn to Nicky Newton-King, former CEO of the JSE and current Chair of Stellenbosch University Council. Nicky, let's dive into the Wilgenhof issue. You recently penned an op-ed in the Daily Maverick. Can you elaborate on your views?
Nicky Newton-King (19:36)
Absolutely, Bronwyn. Stellenbosch University, with its diverse and vibrant community, has been under intense scrutiny. Since January, over 1,700 articles have been written about Wilgenhof. My op-ed was a call to lower the temperature and focus on moving forward. We've reached agreements with stakeholders to address past issues and implement a rejuvenation process. The noise and criticism are complicating these efforts, but it's crucial to recognize the positive changes we're striving for.
Bronwyn Nielsen (22:39)
So, you're essentially asking all stakeholders, including the media, to give you space to navigate this?
Nicky Newton-King (22:51)
Yes, Bronwyn, that's exactly it.
Bronwyn Nielsen (22:54)
Beyond Stellenbosch, you're deeply involved in the corporate world, serving on boards of major companies like MTN, Investec, and AngloGold Ashanti. How do you find the time?
Nicky Newton-King (23:13)
It's been incredibly busy but rewarding. Each board operates in a distinct sector, providing unique challenges. For instance, Investec is dual-listed in London and Johannesburg, while AngloGold is now primarily focused outside South Africa. It's intellectually stimulating to navigate these varied spaces.
Bronwyn Nielsen (25:04)
Given your diverse board experience, what is the current sentiment in boardrooms regarding South Africa?
Nicky Newton-King (25:39)
There's a cautious optimism. While macroeconomic challenges are undeniable, there's a palpable sense of wanting to rebuild and push forward, especially following the peaceful 2024 elections. However, companies like AngloGold, which no longer have significant operations in South Africa, are naturally less engaged with the local market.
Bronwyn Nielsen (26:33)
Finally, as we near the close of the year, let's touch on international sentiment, particularly with the upcoming U.S. elections. What's your take on the "Trump trade"?
Nicky Newton-King (26:56) I find it challenging to reconcile some of Trump's policies with core values, especially regarding sustainability and unity. However, his economic policies could benefit certain sectors. The key question is whether companies will align with these policies while staying true to their commitments on social and environmental issues. And let's not forget, the media and pollsters have repeatedly underestimated his support. It's something we all need to reflect on.
Read also:
