Daily Market Blog: Shang High and Low

28-JUL-15

"In China I guess what we have to remember is that participation in the equities market is something that is relatively new, the Chinese stock exchange as we pointed out the other day only restarted in 1991. Before that I am guessing that it was cash, or there was very little savings as the economy has grown 25 fold since back then. By contrast the market has woefully underperformed the broader stock market, over a decade and a half the Chinese stock market is up a little over 200 percent."






To market to market to buy a fat pig. Locally stocks sank ever so slightly, led lower by industrials, resource stocks bounced as the Rand weakened. More specifically, gold shares bounced hard off very depressed levels, some individual stocks up as much as 7 or 8 percent. Wow, if nothing the ride is wild, although it seems more like a B24 riddled with holes rather than a cruise where the pilots are in control.

Construction group Group 5 confirmed how tough it is out there with a poorly received trading statement, sadly for shareholders the stock sank nearly 13 percent. The stock now trades at a 52 week low, as far as I can tell, the government employees pension fund is the largest shareholder here with a little over 15 percent of the shares in issue. The one thing that I will give the company is that they have consistently paid a dividend through the good and bad times, an unbroken streak (on both the final and interim) back to the 1970's. As far as I can tell. To put that into perspective, Murray & Roberts have paid only one dividend since the World Cup was held here in 2010, Wilson Bayly has also managed to pay through the cycle. Ditto Raubex, perhaps it is just a Murrays "problem".

Read More...

What we do at Vestact

Vestact manages money for private clients, in Rands in Johannesburg and in US Dollars in New York. We offer individualised investment accounts, and a high level of personalised service. Through low fees and effective stock-picking, we have delivered industry-beating investment performance. For a longer description of how we go about the business of asset management at Vestact, click here.

To open an account, call us on 087 985 0939, or come in and visit us at our offices at 24 Crescent Drive, Melrose Arch, Johannesburg.

Stocks which we currently recommend

Amazon.com is the world's leading online retailer.

Apple is global leader in tablet and smartphone technology.

Aspen is a rising global star in generic pharmaceuticals.

BHP Billiton is the world's largest industrial commodity mining company.

Bidvest is a diversified services company, which may re-organise its portfolio.

Cerner provides IT solutions in the healthcare industry.

City Lodge is a growing mid-priced hotel group in urban areas of SA.

Discovery is a healthcare services administrator and life insurer.

Facebook is a dominant social media platform provider.

Famous Brands is SA's largest quick-service restaurant group.

General Electric is a diversified investment holding company.

Google is the world's biggest search engine and online advertising platform.

Johnson & Johnson is the largest consumer healthcare and pharma company.

L'Oreal is a world leader in the manufacturing and sale of beauty products.

Luxottica is the world's largest branded sunglass maker and retailer.

MTN Group is an emerging markets mobile telecoms giant.

Massmart is a big-box discount retailer in Africa, now 51% owned by Wal-Mart.

Mediclinic owns hospitals in SA, the UAE and Switzerland.

Naspers is an in emerging markets company focussed on digital TV & Internet.

Nike is a global designer and retailer of sporting equipment.

Omnia is a fertiliser and explosives producer.

Richemont is a luxury brands company expanding in Asia.

Sasol is a global player in chemicals and fuels technology.

Starbucks is a roaster, marketer and retailer of coffee.

Stryker makes hip and knee joint replacements and hospital beds.

Tiger Brands is a basic and branded food producer, expanding through Africa.

Visa is a global payments technology company.

Woolworths is SA's leading organic food retailer & clothing business.

Archived Reports

CNBC Africa Hot Stocks Videos

Newsletter Sign Up

Sign up for our free daily market newsletter.

Paul Theron's Tweets

Sasha Naryshkine's Tweets

Byron Lotter's Tweets

Michael Treherne's Tweets