SA Market Overview | 22 - 26 July
Outline
● The South African rand had weakened 1.83% by Friday’s close, and is currently trading at R18.38 against the dollar. Investors were anticipating June’s inflation data and monitored the US presidential race. They are cautious, following US President Joe Biden’s withdrawal from his re-election bid and endorsement of Vice President Kamala Harris.
#USDZAR.
Overview
● Alexforbes Investments is launching the AF Infrastructure Impact Fund-of-Funds in July 2024. It is targeting R5 billion for investments in sectors like renewable energy and public utilities to provide long-term, inflation-beating returns and a socioeconomic impact. This initiative also aims to advance inclusivity in asset management by incorporating premier black-owned or managed infrastructure portfolios.
#AFH
● Pick n Pay's share price plummeted over 16% last week as it commenced a R4-billion rights issue, allowing shareholders to buy new shares at a discounted price of R15.86. The share price adjustment, which saw Pick n Pay's shares drop from R28.50 to R23.29, was expected due to the dilution effect of the new shares being offered.
#PIK
● Discovery Life reports a growing preference among South Africans for dollar denominated life insurance to hedge against the weakening rand, expecting its Dollar Life Plan to constitute 10% of its annual premium income by 2025. This plan, which offers offshore payouts in US dollars, reflects South Africans' increasingly globalised lifestyles and need for stable currency protection.
#DSY
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