CLICK HERE TO LISTEN TO YOUR EARLY MORNING UPDATE ON NEWS THAT MATTERS: Oil price drops sharply as China admits economic woes; US market’s run continues into the new week; SA banks firm up in sympathy with strong Absa results; Rand’s rally runs out of puff.
In mid-June, Kokkie Kooyman referred me to a note he sent to Denker Capital clients extolling the attraction of banking shares. It came hard on the heels of my having been impressed by Absa’s new CEO, whom I met in Davos. After crunching the numbers, Absa was duly added to the BizNews model share portfolio at the June 28 webinar.
___STEADY_PAYWALL___We paid R159.35, which is turning out to have been an excellent entry level. The price has firmed up recently in anticipation of interim results to end June. They closed 1% higher at R188.25 yesterday following the release of those numbers. That’s a healthy 18% return in six weeks.
I caught up with our favourite banking analyst yesterday to hear what he thought of Absa’s interims. Kokkie was upbeat, reckoning that under low profile CEO Arrie Rautenbach and his team, Absa is now the ‘best of the rest’ behind FirstRand in SA commercial banking (ie excluding Capitec).
Despite the share price bump since end-June, Kooyman says there’s plenty of upside for the Absa’s share price. His prediction: 50% higher in two years. Not counting the likely boost from a post-2024 Election business-friendly coalition government (click here).
More for you to read today:
- The DA, party defections and race narratives. The IRR’s Terence Corrigan writes on the reaction to Makashule Gana’s departure and Helen Zille’s ‘black list.’
- The Market’s Peak Inflation Story Fights the Fed. There’s no sign the Fed will change its mind and agree that rates should come down again next year.
- Warren Buffett’s Berkshire Hathaway Keeps Spending Through Volatile Markets. Apple, Bank of America, Coca-Cola, Chevron are among Berkshire’s top holdings.
- Not Upgrading This Year? How to Make Your Old Phone Last. Follow these steps to save battery life, improve speed and reduce wear on your older iPhone or Android model, especially if its operating system hasn’t hit its expiration date yet.
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