Daily Market Blog: Frothy fistycuffs
"Why would SABMiller's share price have been up as much as 12 percent during the day here in South Africa? Well, if AB Inbev are supposedly looking for a 122 billion Dollar takeout of SABMiller, and SABMiller were no longer the hunter, rather the prey, you can see why the share price would be more elevated."
To market, to market to buy a fat pig. We were closed, and by we, I mean the royal we, the JSE systems were under pressure and as such trade only started around 11:30 local time, SENS messages started flowing around an hour earlier than that. When we eventually opened, it was weak across the board, financials and in particular the resource companies continue to bear the brunt of sloppy Chinese data, pointing to weakening demand and an average looking economy. I am pretty sure that everyone would love to have an average economy that grew by 7.5 percent off an ever increasing base, locally we are confined to just missing a recession. Yowsers.
It certainly is tough out there, the impact of the various stoppages in the economy continue to flow through the numbers of the ZA inc. businesses. In fact, I was on the box with a fellow from BAML who said that South African companies that have a larger portion of their earnings offshore, those companies attracted a serious premium to those that were just purely South African. Makes sense I guess, most of that premium was as a result of a weaker currency through the year.