Johan Meyer

Financial Markets | Sharenet | Portfolio Management | Contrarian | Sports Fanatic | All tweets are my own opinion and don’t constitute financial advice

[Johan Meyer @jmtr4]

$JSE
The JSE recovered some of yesterday’s losses, closing 2% higher as buying interest returned. Tencent provided a constructive update on the progress of its AI initiatives, supporting a sharp re-rating in Naspers and Prosus, both of which gained around 10% on the day. Bidcorp released a 10-month trading update that exceeded market expectations, while Telkom reported results in line with guidance and announced an improved dividend year on year. On the stock level, gains were led by Naspers, Prosus, Anglo American, Glencore and BHP, while the downside was concentrated in BTI, Reinet, Mr Price, Sanlam and Pepkor. Bitcoin came under pressure, declining more than 5% during the session as investor attention remained firmly focused on AI-related opportunities. Approximately R30bn traded on the day, with the rand strengthening to R16.23/$ at the close.

[Financial Times @FT]

Gold has overtaken US government bonds as the world’s top reserve asset. The shift reflects an attempt by many countries to seek alternatives to the US dollar, the world’s de facto reserve currency https://t.co/h3NnirICcS

[Johan Meyer @jmtr4]

$JSE
A broad risk-off move saw the JSE fall more than 2.4% as oil prices surged after Iran reportedly suspended negotiations with the US in protest against Israeli attacks in Lebanon, raising concerns over further escalation in the region and potential disruptions to energy supply through the Strait of Hormuz. Banks, retailers, gold and PGM counters contributed the most to index losses, with only a select few counters managing to finish the day in positive territory. On the stock level, Sasol benefited from the stronger oil price, while the downside was dominated by precious metal counters, with Pan African Resources, AngloGold Ashanti, Gold Fields, Harmony and Sibanye among the hardest hit. Approximately R23bn traded on the day, with the rand at R16.35/$ at the close.

[Unathi Kwaza @KwazaUnathi]

https://t.co/oesMiYdIte
End of an era for the 105-year-old South African company behind Jungle Oats and Energade

[Johan Meyer @jmtr4]

$JSE
The JSE ended the day down 0.38%, with a substantial closing auction driven by the MSCI rebalance contributing to total value traded of approximately R49bn. Most counters spent the session in negative territory, with only a select group managing to close higher. Spar, Dis-Chem and Nampak released results during the day, with Nampak the standout performer following its update. On the stock level, gains were led by Richemont, Investec and AngloGold Ashanti, while the downside was driven by Clicks, Reinet, Shoprite and AB InBev. The rand strengthened to R16.17/$ at the close.

[Johan Meyer @jmtr4]

$JSE
Another news-driven trading day on relatively light volumes saw the JSE close down 0.26%, with the market trading in deep negative territory for most of the session before recovering some of the losses late in the day following yet another unconfirmed AXIOS post suggesting a deal had been reached. Selling pressure was broad-based, with only a handful of counters managing to end the day in positive territory. Renewed interest in Blue Label Telecoms attracted significant buying support, with the counter closing more than 5.6% higher on strong volumes. Lewis and Life Healthcare also released results during the session, with Lewis reporting stronger HEPS growth and closing more than 5.5% firmer, while Life Healthcare fell over 5.5% as the market appeared disappointed with topline growth. UPM also signed a definitive agreement to form a graphic paper joint venture with Sappi, while FirstRand is reportedly in talks with Bidvest Bank regarding a potential acquisition. On the stock level, gains were led by MTN, Harmony and Impala Platinum, while the downside was driven by Clicks, BTI, Firstrand and the major banks. The SARB raised interest rates by 25bps, in line with market expectations. Approximately R21bn traded on the day, with the rand at R16.27/$ at the close.

[Johan Meyer @jmtr4]

$JSE
The JSE, in line with global markets, traded on relatively light volumes as participants awaited further developments in the Middle East that could provide greater clarity for the deployment of capital across risk assets. Telkom and Reinet released results during the session, with Telkom surging more than 10% following a strong set of numbers, while Reinet fell sharply after reporting a 4.5% decline in NAV, with the market seeking greater clarity around future capital allocation. Banks and select retailers found favour on the day, while gold and PGM counters bore the brunt of the selling pressure. On the stock level, gains were led by Richemont, Mr Price and Clicks, while the downside was driven by Reinet, Sasol and precious metal counters including Pan African Resources, Northam and Gold Fields. Approximately R24bn traded on the day, with the market closing 0.4% lower and the rand at R16.36/$ at the close. Recent rand strength was largely driven by a weaker US dollar following last week’s Moody’s downgrade of US sovereign debt, a sharp decline in oil prices on optimism around a potential Iran ceasefire, and improved global risk appetite following Nvidia’s record earnings release, despite South African CPI rising to 4.0%, its highest level since August 2024. Attention now turns to tomorrow’s SARB policy meeting, with a 25bp hike back to 7.00% increasingly being priced into the market.

[Business Explainer @businessXplain]

PENSION FUNDS HIT WITH NEW RULES

South Africa’s proposed COFI Bill will introduce sweeping new rules for pension funds, retirement fund administrators and employers.

The legislation aims to strengthen customer protection, improve transparency and tighten governance standards across the financial sector.

Retirement funds will need licences from the Financial Sector Conduct Authority to operate, while trustees will face stricter “fit and proper” requirements.

Employers could also face greater scrutiny over unpaid pension contributions.

Read more - https://t.co/4gb4VlW3d9

Pictured - Thato Makoaba, Associate in Employment Law at Cliffe Dekker Hofmeyr

[Johan Meyer @jmtr4]

S&P 500 forecast to end year slightly higher even as war drags on https://t.co/ChqbpsXlOB
@sharenetsa

[Johan Meyer @jmtr4]

$JSE
Truth Social headlines and broader geopolitical developments continued to dominate trading activity on the JSE, with the market closing marginally lower as participants monitored whether an agreement between the US and Iran could be reached, or if tensions would escalate once again. Banks led the gains, with renewed interest in FirstRand amid speculation around potential interest in its UK business, Aldermore, while Moody’s recent revision of South Africa’s sovereign credit outlook to positive also supported sentiment toward the sector. Trading updates and results from Pepkor, Datatec, Stefanutti Stocks and Coronation kept participants active during the session, while MTN Ghana announced the suspension of its proposed new money-transfer fee. On the stock level, gains were led by Sasol, FirstRand and Investec, while the downside was driven by NPN/PRX, Pepkor and Bidvest. Trading volumes remained subdued for most of the day, with approximately R23bn traded on the day and the rand at R16.36/$ at the close.
For insights into the latest results and trading updates use the link https://t.co/QACbqITUZO

[Reuters @Reuters]

South Africa's Pepkor earnings rise on acquisitions, strong clothing demand https://t.co/fR6O322kBB https://t.co/fR6O322kBB

[Johan Meyer @jmtr4]

$JSE
A risk-on session on the JSE saw the market close up 2.6%, with most counters trading in positive territory despite subdued volumes for much of the session. Markets in the US, London and Hong Kong were closed for the day, contributing to lighter trading activity. Optimism around the prospects of a renewed agreement between the US and Iran supported broader buying interest across the market. On the stock level, gains were led by gold and PGM counters, with Valterra, Harmony, Sibanye and AngloGold Ashanti posting strong gains, while the downside was limited, with Sasol, Reinet and Bidcorp among the weaker performers. Approximately R17bn traded on the day, with the rand strengthening to R16.30/$ at the close.

[Johan Meyer @jmtr4]

$JSE
An eventful session on the JSE, characterised by reduced liquidity and elevated volatility, saw the market close 0.6% lower, with a broad range of updates and results releases driving increased trading activity as participants digested the latest corporate releases from Investec, Netcare, Sanlam and Pick n Pay, among others. On the stock level, gains were led by financials and diversified miners, with Investec, Old Mutual, Glencore and Anglo American among the stronger performers, while the downside was concentrated in gold and PGM counters, including Northam, Naspers/Prosus, Valterra and Impala Platinum. Approximately R27bn traded on the day, with the rand at R16.54/$ at the close.

[Johan Meyer @jmtr4]

$JSE
A muted start to the session on the JSE gave way to increased activity into the afternoon, with the market closing up 1% as participants focused on developments in the Middle East and the highly anticipated Nvidia results due after the US close, which are expected to test the durability of the AI-driven rally. Gold counters pushed the JSE higher, while oil futures retreated following Trump’s remarks that US-Iran negotiations are in their final stages. South African inflation rose to 4%, in line with expectations, fuelling expectations of a rate hike at the next MPC meeting. On the stock level, gains were led by gold counters and financials, with Harmony, AngloGold Ashanti, Standard Bank and FirstRand among the top performers, while the downside was relatively limited, with Sasol, BTI and NPN/PRX among the notable laggards. Balwin Properties announced that the PIC, together with a consortium, has made an offer to acquire all Balwin shares at R4.35 per share. Approximately R28bn traded on the day, with the rand at R16.40/$ at the close after reaching R16.70 early on.

[Handre @Handre]

The South African Reserve Bank has a long history of hiking rates to hit its 3-6% inflation target while the economy collapses around them. This obsession with statistical price stability over genuine economic health perfectly captures the intellectual bankruptcy of modern central banking.

SARB raised rates 475 basis points between November 2021 and June 2023, pushing the repo rate to 8.25%. Meanwhile, unemployment sits at 32.9%, GDP growth stagnates below 1%, and load-shedding has destroyed productive capacity. The bank treats these symptoms as unfortunate externalities rather than the predictable consequences of monetary central planning.

Sustainable price stability emerges from increased production and voluntary exchange, not interest rate manipulation. When you artificially suppress demand through higher rates while ignoring supply-side destruction (thanks to government interference in energy markets), you create stagnation without addressing the root causes of price increases. The Reserve Bank fights the thermometer instead of the fever.

The tragedy extends beyond South Africa's borders. Emerging market central banks worldwide copy this failed playbook, sacrificing real economic growth for the illusion of monetary control. They target narrow price indices while ignoring asset bubbles, credit misallocation, and the systematic destruction of savings through currency debasement.

Every rate hike that pushes another business into bankruptcy while politicians celebrate "inflation progress" proves that central banks serve political masters, not economic reality.

[Johan Meyer @jmtr4]

$JSE
The JSE closed 2.6% lower in a broad-based risk-off session, in line with weakness across global markets. Most counters ended firmly in negative territory, with only a select few managing to close on the front foot. Market participants remain focused on gaining greater clarity around ongoing US-China discussions, alongside developments relating to the reopening of the Strait of Hormuz. On the stock level, the downside was dominated by resource counters, with Northam, Valterra, Harmony, Impala Platinum and Gold Fields among the hardest hit, while Sasol, NPN/PRX and selected retailers managed to buck the broader trend. Approximately R25bn traded on the day, with the rand at R16.67/$ at the close.

[Africa Daily @AfricaDailyZA]

The High Court has ruled that the Arms Deal case involving former President Jacob Zuma and Thales will proceed after years of delays. A key step in a long-running legal process in South Africa.

Read more at Africa Daily

[Johan Meyer @jmtr4]

$JSE
The JSE traded firmer at the open, albeit on subdued volumes, before retreating later in the session to close marginally lower, down 0.09%. Markets responded to expectations of further supportive headlines from China, while reports suggesting an increase in tanker traffic through the Strait of Hormuz also supported sentiment. Goldman Sachs now sees two South African rate hikes in 2026 as a result of the war backdrop. Pick n Pay jumped 7.6% following a Daily Investor article speculating that the group could become a takeover target. On the stock level, gains were led by defensives and financials, with BTI, Bidcorp, Standard Bank and Shoprite trading firmer, while the downside was concentrated in resource counters, including Impala Platinum, Valterra, Sibanye and Prosus/Naspers. Reunert released an update at the close indicating softer HEPS guidance. Approximately R19bn traded on the day, with the rand at R16.46/$ at the close.

[Johan Meyer @jmtr4]

$JSE
The JSE traded sideways for most of the session in subdued volumes, closing up 0.6%. Tencent numbers came in below expectations, resulting in sharp weakness in NPN/PRX before both counters reversed in late afternoon trade. US PPI data also surprised to the upside, briefly pressuring the broader market before sentiment improved later in the session, partly driven by the recovery in Tencent-linked counters. Resources traded firmly on the day, while banks and retailers remained on the back foot, although select retail counters staged a recovery into the close. On the stock level, gains were led by PGMs and diversified miners, with Northam, Valterra, BHP and Anglo American among the top performers, while the downside was driven by selected consumer and gold counters, including Clicks, Remgro and Pan African Resources. Approximately R25bn traded on the day, with the rand at R16.44/$ at the close.