Q1 GDP coming out at -2.2%, the worst since Q1 2009, reflects that the Ramaphoria optimism has not resulted in any tangible results and likely kept investors complacent 


The Rand strength is hard to explain and perhaps it will weaken while investors and portfolio managers digest the impact of these GDP figures on their investments.  


Look to pick up the quality rand hedges that have been sold off in the Emerging Market risk off sentiment and the surprisingly stronger Rand.  


The week ahead: 

Last week’s movers and shakers… 

Best Performers: FFB 16.1%; MUR 8.7%; SGL 8.3%; IMP 6.2%; ZED 6.2% 

Worst Performers: TSX -23.3%; SNH -23.1%; TON -9.8%; TOR -8.1%; BAT -7.4% 


Other Economic data releases of interest… 


One to Buy 


AB Inbev bottoming out and offering value at R1,150 


AB Inbev has sold off on a stronger Rand and a sell-off in global consumer stocks. It appears to finally be bottoming out. After strong numbers last month, we believe accumulating around these levels will reward long term investors. It’s paying a dividend of over 4% in EURs and is in a defensive sector 


A driver for future growth comes from consumers opting for premium brands – including beer. Budweiser is also the official beer for the FIFA World cup, which will boost sales and exposure for one of AB Inbev’d beers. 


Accumulate ANH below R1,225 for a move to R1,475. 


Short term Ideas 


Long Term Ideas