Late Friday night Moodys released its rating for South Africa and reaffirmed its sovereign debt rating at investment grade. It even improved its outlook from negative to stable but stated policy ineffectiveness could “… undermine confidence, growth and social cohesion, with inevitable consequences for the country’s balance sheet”. 


The Monetary Policy Committee are expected to decrease interest rates by 0.25% on Thursday due to inflation remaining subdued. This will give indebted consumers a welcomed boost. Retail stocks and banks that have pulled back, after a strong rally, present an opportunity now. 


The week ahead: 

Last week’s movers and shakers… 


Best Performers: GFI 10.2%, HAR 8.7%, ANG 8.1%, AVV 6.7%, RLO 3.9% 

Worst Performers: SNH -24.3%, FFB -18.6%, TOR -15.2%, RES -14.6%, GRT -8.1% 


Other Economic data releases of interest… 


One to Buy 


Naspers: Building Cash reserves for Organic Growth 


The enquiry into Facebook has seen a selloff in all social media stocks lately and with Naspers more than 25% lower from levels last year, we see an opportunity at these levels. 


The share is trading at an almost 40% discount to its SOTP value and Management have sold down its Tencent stake by 2% to raise cash. This is to drive organic growth and unlock value in existing ecommerce businesses and ultimately push to reduce the discount to NAV. 


We’ve been invested in Naspers for a while and see the current pull back as an opportunity to get invested or top up an underweight position. 


Buy below R3,200 with an interim target of R5,000 


None to Sell 


Short term Ideas 

Long Term Ideas