Media Links

MTN shares fall 10% as Nigeria suspends sale of SIM cards December 11, 2020

11 December 2020

“Shares in MTN fell 10% on Friday as Nigeria’s telecoms regulator — which is conducting an audit of mobile users — ordered network operators to suspend the sale and activation of new SIM cards, a move that has investors worried about the company’s prospects in its biggest market.”

Mr Price looking to stimulate credit sales in wake of Covid-19 downturn December 9, 2020

09 December 2020

“In the wake of the Covid 19 pandemic, traditional cash retailer Mr Price, has sought to boost credit as a percentage of their overall sales that have been struggling this year…..”

Altron shares cash on demerger news December 8, 2020

08 December 2020

“Peter Takaendesa, head of equities at Mergence Investment Managers, said Altron’s share price crash was a result of the impending demerger of Bytes UK from the group.“Altron shares are trading excluding the entitlement to receive the Bytes UK assets distribution. This means any investor who purchases Altron shares from today (yesterday) onwards will not receive Bytes UK shares when they list on the LSE and JSE next week,” Takaendesa said.
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EOH’s regeneration plan is bearing fruit December 2, 2020

02 December 2020

“EOH sharply cut its debt and losses in the 2020 financial year, putting it closer to restoring its financial health after a devastating fraud scandal that almost tipped the tech outfit into bankruptcy.”.

SA banks and risk aversion: is a state bank an answer or a distraction? December 1, 2020

01 December 2020

““Are banks too risk averse or just prudent. It’s a debate with no shortage of defenders and detractors on either side”.

MTN, Telkom downgrades to have minimal impact December 1, 2020

01 December 2020

““Commenting on the downgrades, Peter Takaendesa, head of equities at Mergence Investment Managers, says: “Of course, the rating agencies are concerned more about the government finances outlook and implications on the rest of the economy. We believe most of this rating downgrade was already reflected in the debt markets as bond yields have remained relatively high in line with emerging market countries at lower ratings than South Africa.
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Mr Price spurred on by Power acquisition November 27, 2020

27 November 2020

““It is expected to come into effect in April 2021 and the transaction will be settled in cash. Lulama Qongqo, an investment analyst at Mergence Investment Managers, said the purchase would be a good addition to the Mr Price portfolio as they are complementary to each other.Qongqo said it would provide exposure to a cheaper value segment.”

Covid-19 brings the future forward for Naspers November 23, 2020

23 November 2020

““The acceleration in the revenue growth rate is a very positive development,” says Peter Takaendesa, head of equities at Mergence Investment Managers. “Of course, SA investors still want to see revenues translating into profit at the e-commerce level – but as long as revenue growth continues to be driven by strong user uptake, rather than price increases, I believe the trend is in the right direction.”

Investment considerations in the green economy November 19, 2020

19 November 2020

“Major, a veteran mining engineer and respected mining sector analyst, says that governments in Africa have time and again implemented onerous laws or changed the rules and chased away investors. “South Africa is the poster child of onerous regulations chasing away good mining investment opportunities,” says Major…”

Backing green SMMEs for a sustainable economic recovery November 19, 2020

19 November 2020

“The Green Outcomes Fund is the result of a World Bank Climate Technology Program pilot initiated in 2016, with the Bertha Centre for Social Innovation and Entrepreneurship, GreenCape and WWF-SA as the main design partners. The local catalytic finance partners of the Green Outcomes Fund are: Business Partners Ltd., Conservation International Ventures, Edge Growth Ventures and Mergence Investment Managers. Three new green SMME investments have been made over the past few months..”

Drop in alcohol sales takes Shoprite shares down 10% November 17, 2020

17 November 2020

“Mergence Investment Managers’ analyst Lulama Qongqo said the group’s results tracked the performance of the country’s major retailers. “The sales growth numbers are tracking behind expectations due to their inability to trade liquor as per normal years where there were no government restrictions. However, this is temporary. The surprise here is that the liquor impact was material way beyond expectation,” Qongqo said..”

Vodacom sees explosion in data usage during lockdown November 16, 2020

16 November 2020

“Peter Takaendesa, analyst at Mergence Investment Manager says Vodacom’s growth in users in SA, buoyed by an uptick in demand for connectivity across the telecoms sector, is “encouraging” but will slow slightly as the growth rate normalises.”

It’s digital banking gone crazy as banks join e-commerce – but why? November 16, 2020

16 November 2020

“Banks are using their apps and digital platforms to win customers over in the fast pased world..”

Telkom set to divide and conquer November 15, 2020

15 November 2020

“The much-anticipated unbundling of Telkom is imminent, with CEO Sipho Maseko saying this week that the group’s first step in the process – the introduction of a third party investor for its mast and towers division – would be completed by the end of March next year.”

MultiChoice grows subscribers while managing lower ad revenue November 12, 2020

12 November 2020

“MultiChoice reported a 41% rise in earnings for the half-year to September, benefiting from higher entertainment demand during the Covid-19 lockdown as it was hit by reduced advertising revenue..”

Vet those enticing Black Friday deals, says Cell C November 9, 2020

09 November 2020

“Mkhize said consumers should read the fine print. Lulama Qongqo, Mergence Investment Managers’ investment analyst, said consumers should look for the best possible deal that was based on their needs, or not buy a new device if they did not need one, because income prospects over the next few years were uncertain..”

Motus surges after upbeat profit forecast November 8, 2020

08 November 2020

“The share of SA’s largest automotive group Motus rocketed almost a third on Friday after it said it expects to hold on to most of its profits even as a surge in Covid-19 threatens more economic pain and reduced travel.”

INTERVIEW | We needed home loans to switch more customers to Capitec November 4, 2020

04 November 2020

“Capitec has started dipping its toes into the home loans market by launching the Capitec home loans offering…”

Incorporating infrastructure into multi-class portfolios November 3, 2020

03 November 2020

“Brad Preston, Joint MD of Mergence Investment Managers, unpacks some research the listed investments team has done, drawing on data from its 10-year track record of infrastructure investing by the manager’s unlisted investments team.”

Prosus hopes to close discount to NAV with $5bn share buyback November 2, 2020

02 November 2020

Peter Takaendesa, the head of equities at Mergence Investment Managers, said the wider discounts at which Naspers (more than 50 percent) and Prosus were trading compared with the market value of their underlying investments and high valuations of assets in markets they had been looking for acquisitions made share buybacks more attractive than pursuing acquisitive growth.