What a year 2020 has been so far. Most news this year was understandably negative, with words like Covid-19, pandemic, lockdown, market correction and economic recession everywhere. Locally, we also had a few bonus words thrown around, like junk status and foreigners as net sellers of local shares and bonds. The question I’d like to address in this issue, considering the fact that foreigners have been net sellers of South African shares for 16 months in a row as at the end of October 2020, is whether or not there are still any buyers of SA shares out there. The short answer is: definitely. In fact, recent news about local companies has been very positive, and that may very well lead to more good news. Let’s look at a few.
In total, 99% of Adcock Ingram’s turnover is generated in Southern Africa. Earlier this year, it bought back 1.5% of its shares. Its largest shareholder, Bidvest, announced on 23 October, however, that it has increased its shareholding in the company to 56.1%.
American-German Linde, which owns 50.47% of Afrox, recently announced that it would like to buy the rest of the outstanding shareholding at R21.18 per share, resulting in its delisting.
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SO, WHAT NOW?
AS WE PUT 2020 BEHIND US, 2021 ISN’T EXPECTED TO LOOK MUCH BETTER (THOUGH A LITTLE).
The outlook for SA's four popular investment instruments
As 2020 draws to its bitter close, some respite may lay ahead for local stocks and bonds. The drive to list a diversified basket of offshore-focused exchange-traded funds will likely continue unabated. And the rand? Lest we burn our fingers in ever predicting our volatile currency.
MAKING BAD (INVESTMENT) DECISIONS IN A PANDEMIC
Many investors fell into the trap of either selling stocks at depressed prices during the March market rout, or cashing in their pensions.
Goodbye 2020 ... Hello 2021
Schalk Louw shares his outlook for the largest asset classes available to local investors.
How Has The Covid-19 Pandemic Affected The Inflation Outlook?
Due to deglobalisation and higher commodity prices, inflationary risks are increasing worldwide.
How Technology Influences Politics
Advances in how we communicate will continue to create opportunities for those who want to sow division.
The curious case of the US elections
Introducing Refined Ruggedness
The Ford Ranger Thunder exhibits double-duty dexterity off- and on-road.
Medical Schemes' Healthy Reserves Underpin Lower Premium Increases
The medical aid scheme industry is faced by stagnant membership as South Africans suffer from economic headwinds. Nevertheless, schemes are well positioned to buffer the effect of Covid-19.
Emerging Markets … And Trends
As developing nations navigate their way through the worldwide pandemic, there just might be some investment opportunities starting to emerge, writes Jaco Visser.