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Spring has sprung, President Ramaphosa sold a buffalo for R1,8 million, the number of companies listed on the JSE continue to shrink and investing in bonds and stocks has never been easier - thanks to RSA Retail Bonds and Satrix Investments.

Let's take a look.

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The following is not financial advice and opinions are those of the writers.

Headlines

• President Ramaphosa is feeling quite bullish after selling a male buffalo for R1,8 million at an auction on his Phala Phala farm. The auction sold twenty five other animals leading to a total revenue of R6,8 million for the day.

• Sibanye-Stillwater reported R11,938 billion headline earnings in the past six months ending June 2022. This is a major drop from R24,833 billion in last year's six month earning results. Their financial performance is attributed to a three month long strike that halted their gold mining operations in South Africa, and disruptions in their US platinum mine operations.

• Tsogo Sun Hotel is rebranding as Southern Sun in an effort to cut losses and turn around post pandemic profits. The hospitality giant received confirmation from the Companies and Intellectual Property Commission of their official name change. Southern Sun shares will begin trading on the 7th of September.

• Super Group completed an open market repurchase of 25 million shares at an average cost of R29,63 per share. The repurchase of 6,7363% of their ordinary shares occurred over a period of three months with a total value of R741 504 065.72. Super Group cancelled over 7 million of the repurchased shares and has applied to the JSE for the cancellation and delisting of over 17 million shares.

Deal Flow

• Walmart plans to delist Massmart Holdings Ltd. from the JSE in a R6,4 billion deal. The majority stakeholder aims to acquire all publicly traded shares in another JSE delisting for R62,00 per share at a 53% premium on 26 August's share price. Massmart owns Makro, Builders, Game, Cash & Carry, & more.

• African Bank has won the bid to acquire Ubank's assets and liabilities for a cash amount of R80 million. Ubank offers financing to low income individuals that form a part of the working class, and has a substantial client base in the mining sector. African Bank will be migrating all of the Ubank's clients onto their myWORLD bank account product.

• African Bank acquires 100% of Grindrod Financial Holdings Ltd.'s ordinary shares and 100% of Grindrod Bank's preference shares. The deal was sponsored by Rand Merchant Bank and a cash amount of R1,5 billion was agreed upon. Grindrod Financial Holdings is an investment holding company that owns 100% of Grindrod Bank's ordinary shares. Grindrod Bank is an investment bank that largely services the property market as experts in commercial and industrial property finance.

Quote of the Month

Breaking the barrier

by Tshepo Kgaphola

Government Bonds are debt instruments used by governments governments to raise funds. Bondholders receive regular interest payments and a loan repayment in exchange for an initial principal.

Equity is the capital companies raise through the sale of shares to individuals or other organisations.

Market Capitalisation is the value placed on a company according to the market.

Exchange Traded Funds are a basket of securities that are bought and sold on a stock exchange through a broker. ETF’s expose passive investors to a diversified group of securities according to sector, industry and asset type preferences. The financial instruments are particularly attractive as they aim to replicate the performance of a broader index. For example, the S&P500 replicates a broad stock market index.

Unit Trusts are actively managed portfolios where investors can hand over a lump sum of capital or pay monthly amounts to be invested on their behalf in the stock markets. Investors pay a fee for the privilege of having their funds managed.

Investing is not a habit it is a lifestyle

by Tshepo Kgaphola

Satrix Investments and Retail Bonds shared thorough insights on how student can increase their financial appetite and taste for investments. Here is what we learnt:

RSA Retail bonds

How risky are government bonds? Practically risk free! These bond are issued by the government and this means that the risk of default is nonexistent or highly unlikely.

What type of government bonds are there? There are vanilla bonds, variable bonds, CPI Bonds and zero coupon bonds.

How can we invest in bonds? It is a seamless process. Click here to access RSA Retail bonds.

Writers thought on bonds: I take governments as a mode of savings for long term. It is essential to learn how to manage, save and invest money at a young age especially as a student who is still trying to find his/her way in the real world. In order to face the real world, one should, firstly, be equipped to face it. It is important to save and invest before spending. Remember: if you can't handle a thousand bucks the you won’t be able to handle a million bucks!

As a young investor, It is never wise to put all your eggs in one basket. it is vital to diversity your portfolio of investments by including risky and risk free investments. Risky investments such as equity. In that case Satrix is the best platform to engage with.

Satrix Invetments

Satrix is South Africa's leading provider of index-tracking products, covering a wide range of Exchange Trades Funds (ETF’s) and unit trusts.

What products does Satrix offer? Satrix offers a variety of products, you can learn about them by visiting their page here. Satrix 40 ETF is the most popular product. It tracks the performance of JSE listed companies and selects the top 40 best performers according to market cap.

"Satrix 40 is a well renowned invesment arm that is popularly known as an easy and cost effective way to break into the JSE. The JSE provides a market where securities can be traded freely under a regulated procedure."

Writers thoughts on Satrix products: As a curious investor, I have interest in shares, bonds and other securities. RSA Retail bonds & Satrix offer are a great way to start building a strong well diversified portfolio for your future. Good luck to you on your investment and look forward to seeing you next time at one of our insightful ASBIP events, thank you!

That is it for this week! Thanks for reading and all the best with your upcoming tests.

All the best,

Hlumelo Lujiva

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