Morning Note – 31 January 2018

 

31 January 2018

SENS Summary

 

Capitec Bank Holdings Limited (CPI)

  • Viceroy released a research report regarding Capitec’s business model, stating that the bank should be placed under immediate curatorship. Capitec announced that the report is filled with factual errors, material omissions in respect of legal proceedings against Capitec and opinions that are not supported by accurate information. Capitec has not been approached by Viceroy for insight into their models and none of their allegations have been discussed, tested or verified with management.

 

PSG Group Limited (PSG)

  • PSG is the largest shareholder in Capitec with a 30.7% interest. PSG fully supports the Capitec management team and business model. They stated that Capitec’s corporate governance is undoubtedly world class. They also stated that Capitec continues to follow a prudent approach to capital and liquidity management and to the granting of credit and related write-offs and provisioning.

 

Vodacom Group Limited (VOD)

  • Vodacom released a trading update for the quarter ended 31 December 2017. Their revenue increased by 6.7%, service revenue increased by 5.5%, active customers increased by 13% and the group’s data revenue increased by 9.7%.

 

Current Forex

  • ZAR/USD : 11.96
  • ZAR/GBP : 16.96
  • ZAR/EUR : 14.87

 

JSE Top 40 Moves

PSG Group Ltd (PSG)

 

PSG lost 7.81% yesterday after Viceroy released a research report on Capitec. PSG holds a 30.7% stake in Capitec. After reaching an intra-day low of R194.89 the share recovered and closed at R236. Resistance can be found at R248,62, followed by the 200-day moving average at R252.80. R233.02 could act as a key horizontal support level. The stochastic is trading in neutral territory.

 

Contact us:

Schalk Louw

Portfolio Manager

 

  Tel: +27 21 202 2715

Schalk.Louw@psg.co.za

 

 Kobus Viljoen

 Investment Analyst

 

 Tel: +27 21 204 4074

Kobus.Viljoen@psg.co.za

 Pieter-Jan van Niekerk

 Equity Analyst & Trader

 

      Tel: +27 21 202 2716

   PJ.vanniekerk@psg.co.za

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