Massmart had a corker of a day

What moved my Jozi markets? Massmart had a corker of a day, see below some more on that, dragging the rest of the retail sector much higher with it, the sector up 3.08 percent. Banks also had a cracker of a day, up nearly two and a half percent. The gold miners lost a little shine as the local currency firmed through the seven to one US Dollar mark. This as the Dollar continued to lose ground to the Euro. What a hoot, everyone was talking about Euro Dollar parity a mere half a year ago as the European woes escalated through the beginning of summer into June and beyond and now we sit with Euro Dollar cross at 1.346, having been over 1.35 yesterday. Back to Jozi, the local markets closed 244 points better to 28959, up around 0.85 percent.



Yesterday was in parts all about the Wal-Mart and Massmart deal, it failed to register on the major networks overseas, but was most certainly the top story here. There were of course the major publications like the WSJ and the FT making positive noises about the deal, so the print (can you still say that?) media had it top of their agenda. We watched the price of Massmart trade quite comfortably above the tentative offer price, at one stage Massmart traded above 153 Rands a share, but settled back to close at 149 ZAR, up ten and a half percent for the day. The lowest it traded on the day was 148 and a half Rands.



Did you get a chance to see the Grant Pattison webcast, I suspect this was done on Sunday evening after their board meeting. It was great that this could be a new form of media dissemination, and again underscores how important the web has become in our lives. Check it out, I still think that ours (above) is better, this has been served via the Moneyweb Youtube user: Walmart non-binding expression of interest Q&A with Grant Pattison. Hah. But then again I would think that ours is better.



One of the most interesting factoids about the deal is that this is the biggest purchase (remember, if it were to happen) by Wal-Mart in around a decade. So, if you needed any sort of vote of confidence for your country, no bigger vote of confidence than this. I guess.




Hot on the heels of the purchase of a little known flame grilled chicken business called Giramundo comes an announcement from Famous Brands that they will be buying up a little known Bakery business called Vovo Telo. Apologies to all the residents of Newton Park and Richmond Hill in Port Elizabeth and those folks who know the outlet at 44 Stanley in Jozi, near the Gas works. Near UJ. You know, over there. So an interesting almost new strategy from the dudes at Famous Brands. Again, the theme is familiar, buy an established brand and then roll out a massive network. The price is undisclosed, I suspect that it would be around the same as the grilled chicken business acquisition, take a 51 percent stake and let the manager slash owner run with it.