The South Africa Market today 28/07/2021

The South African Markets in Focus.
PGM Miners
On Monday Anglo American Platinum reported record results for the full year. The production was up 28% in the year and refined production is up 128%. With record commodity prices especially palladium and rhodium this was inevitable that this will filter through to the bottom line. Anglo declared a dividend of R175 per share which was 100% of of HEPS. In my opinion I anticipate to see the same sort of results from Anglo Platinum’s competitors as all of the competitors were In a position to consistently to achieve such high cash flow generation and will be able to fully capitalise on the PGM prices.
Below I illustrate the consensus among analysts on Anglo American Competitors.

SSW:SJ


Disclaimer: This is a consensus forecast for various shares listed on the JSE. This is what the South African broker community (analysts) forecast and recommends for the shares over a 12-month period. Please note that these forecasts should not be used or relied upon in isolation. Please use with caution


IMP:SJ



Disclaimer: This is a consensus forecast for various shares listed on the JSE. This is what the South African broker community (analysts) forecast and recommends for the shares over a 12-month period. Please note that these forecasts should not be used or relied upon in isolation. Please use with caution






Naspers and Prosus

Over the past 2 months the market has not been pleased with the widening gap in the valuation to Net asset value of this stocks. The management team has tried their best to unwind this gap but have dismally failed as the gap continues to widen. In recent times Chinese regulators where the biggest asset for Naspers and Prosus “Tencent” is listed have been cracking down on Technology stocks. Ant group was denied its IPO which was going to be the biggest IPO for the region. Relations between the Chinese communist party and the founder of the business had deteriorated, and this has somewhat become systematic. In Only two days Naspers and Prosus lost over 14% in value after Tencent announces that it has suspended user registrations on We chat to upgrade security systems to align with relevant laws and regulations. Coupled with that the broader Chinese technology sector was rocked by a leaked memo that proposed an overhaul of the education sector. In my opinion I have not changed my view of the value of Chinese tech sector stock they have access to markets which have capacity to grow and have not reached saturation. I still believe that the inability to price regulatory uncertainty and unpredictability requires caution from traders and investors alike. For as long as there is uncertainty I would wait on the side-line for the planned path of the regulatory space. With that being said the assets which are owned by Naspers and Prosus still provide value for a world which has been re arranged to be at home for the foreseeable future