Daily Market Blog: Not always Coca-Cola

16-APR-14

Byron Beats the Streets


Our markets locally fell 0.9% as tensions in Ukraine seemed to flare and spook markets all over the world. Shots were fired between pro-Russian separatists and the Ukrainian military which sparked fears that the situation could be getting worse. Here is the full story from Time Ukraine Sends Troops to Curb Unrest in the East.


There are 7 billion people on this planet with so many diverse cultures and religions. Throw in thousands of years of history and you are bound to get tensions. I am not trying to play down the seriousness of this matter but these things happen. They have happened in the past and they will carry on happening in the future. Markets get spooked over the short term but in the long run businesses still operate on a day to day basis as usual. Events like these include natural disasters, bank runs, defaults, dictatorships, bad weather the list goes on. And so do we, we carry on and keep calm. Humans are extremely adaptable, that is why we dominate the planet. Please remember that I am talking about this in the context of the market, not on specific scenarios which can be treacherous.


The biggest news we had from our locally listed businesses was a production report from BHP Billiton. I say locally listed instead of just local businesses because from my most recent calculations BHP get 0.81% of their profits from South Africa. Ouch, far from a local business. Michael will cover that report in detail.






The US market bucked the trend as good earnings beats were the talk of the day. As I have mentioned before, markets are determined by under lying earnings and what the market expects these earnings to be. The S&P index gained 0.7% while the Nasdaq added 0.3%

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Stocks which we currently recommend

African Bank is one of SA's largest consumer finance companies.

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.

Cashbuild is a supplier of basic building materials in peri-urban and rural areas.

Cisco designs, manufactures, and sells internet infrastructure.

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

Discovery is a healthcare services administrator and life insurer.

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.

MTN Group is an emerging markets mobile telecoms giant.

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

McDonald's is a leader globally in the casual dining market.

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

Nike is a global designer and retailer of sporting equipment.

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.

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.

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