JSE Direct with Simon Brown

Updates and discounts (#384)

Jan. 23, 2020

Simon Shares

  • Deutsche Bank has redeemed three of their ETNs. DBCHIN, DBEMER & DBAFRI. As ETNs they would have expired anyway, but that was due to happen next June. Holders of these ETNs last week will receive cash at net asset value (NAV) for the ETNs and it lso means Deutsche Bank is no longer active in the listed passive space on the JSE.
  • Richemont* (JSE code: CFR) trading update was strong, but with one concern - online. Single digit growth is very pedestrian for online even if they had issues with flooding at one of their warehouses.
  • Strong Shoprite* (JSE code: SHP) trading update. Revenue +7%. Rest of the continent is still struggling, home local was lekker.
  • Wednesday saw Naspers (JSE code: NPN) sold 22million (1.4%) or their Prosus (JSE code: PRX) holding at a price of about R1,080. Naspers claims this is due to demand for the shares from investors. Prosus was off some 3% at just over R1,100. The logic here was that many would buy their new Prosus and sell straight away into the market, netting a small but easy profit in about half an hour. Prosus price will rebound, Naspers was trading up almost 2% as this sale happened. Nasper has said they'll use the Euro1.5billion (about R100billion) for a share buy-back in another attempt to close the discount that exists. But as Piet Viljoen of RE:CM points out in the Tweets below, it's not likely to work.

Thank you for asking, I had hoped someone would. We are in a similar (albeit much, MUCH smaller) situation, so we have thought about it. A lot. Here follows a thread. https://t.co/DkyYmX9zAo

— Piet Viljoen (@pietviljoen) January 22, 2020


* I hold ungeared positions.


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