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Three weird information from the JSE

Three weird information from the JSE

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The world is altering rapidly and in sudden methods.

Who would have guessed {that a} virus in Wuhan, China would have led to a semiconductor scarcity, unfavorable oil futures and our incapability to purchase alcohol?

Or that it will pave the best way for Russia to invade Ukraine, and Germany to start out taking a look at ‘soiled’ vitality once more?

On this wild world, markets are whipsawing each day and it’s price placing some attention-grabbing information down on paper for context.

Naspers has destroyed extra worth than triple the debt at Eskom

The most recent estimate of debt held by struggling SA energy utility Eskom is claimed to be round R392 billion. This whopping determine, although, is dwarfed by Naspers’s (code: NPN) collapse in market cap on the JSE.

From its excessive on November 21, 2017, with a market cap of R1 804 billion, Naspers has fallen to a low (on the time of penning this) of a market cap of R606 billion.

This can be a unfavorable swing in worth of R1 197 billion.

Which means Naspers administration has the doubtful distinction of getting worn out greater than triple the debt of Eskom (nicely noticed, Dale on Twitter).

A lot for “worth unlock”…

Admittedly, that could be a little tongue-in-cheek, as a considerable amount of this draw back has been pushed by a collapse in Naspers’s main funding in Tencent. Being listed in Hong Kong, Tencent has been beneath immense and shareholder-hostile regulatory strain in China that’s making many buyers start to mutter phrases like “uninvestable” when referring to Chinese language Large Tech.

Spun out of Gold Fields, Sibyane-Stillwater was (briefly) bigger than Gold Fields this yr

Established as Sibanye Gold Restricted in February 2013, what’s now referred to as Sibanye-Stillwater (code: SSW) was created by way of the unbundling of Gold Fields Restricted’s 100% owned subsidiary GFI Mining South Africa Proprietary Restricted, which owned the Kloof, Driefontein and Beatrix gold mines.

The ‘Stillwater’ a part of its identify got here from the massive acquisition of the Stillwater Mining Firm in the USA, a predominantly palladium miner that added geographic diversification to the group.

Regardless of being the undesirable orphan of Gold Fields (code: GFI), from January 7 to March 4 this yr), Sibanye-Stillwater had a bigger market cap than Gold Fields!

I’m fairly positive Gold Fields needs it had saved these belongings …

Okay, that can also be somewhat cheeky as Sibanye-Stillwater has solely grown so massive as a result of raft of platinum group steel (PGM) acquisitions it made when PGM basket costs have been hitting multi-year lows. These identical spot costs hit (may or not it’s all-time?) highs as Russia (a big PGM producer and exporter of round 40% of the world’s palladium) invaded Ukraine, triggering main sanctions that benefitted non-Russian producers of those metals.

The fact is that if Sibanye-Stillwater had remained inside Gold Fields it will nearly definitely by no means even have entertained these offers into non-gold belongings, and thus would have missed out.

Your entire JSE-listed property sector is smaller than Amplats … by a third!

For a few years, listed property outperformed. Charges saved falling, purchasing centres and workplaces saved being constructed and crammed, wild cross-holdings saved being structured, and more and more marginal actual property funding trusts (Reits) saved itemizing on the JSE …

The music stopped a pair years in the past.

The JSE-listed property sector has gone from dangerous to worse and collapsed, as an enormous oversupply in purchasing centres and workplaces (which the pandemic has not helped one bit) met over-geared stability sheets and shaky, typically indecisive, administration.

Your entire listed property sector’s market cap is somewhat over R400 billion (not reversing cross-holdings that artificially increase this determine).

Staggeringly, this implies the whole JSE-listed property sector is barely barely larger than FirstRand’s (FSR) R398 billion market cap and practically a 3rd smaller than Anglo American Platinum’s (AMS) R546 billion market cap!

It’s because the world wants well-run banks and PGM metals; does South Africa actually need one other marginal shopping center and workplace park?

Keith McLachlan is funding officer at Integral Asset Administration.

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