South African financial markets have been rocked this morning by a 20% decline in the share price of African Bank Investments Limited (Abil). The banking group had fallen sharply after the release of interim financial results for the six months ended 31 March 2013. While various social media and news channels have been absorbed with the sharp decline in the Abil shareprice, the folks at ETM Analytics managed to pull together the attached graph showing just how unsecured lending had ballooned in South Africa over the last few years.
Investors looking for a potential trade on the JSE may want to follow veteran businessman Dr. Christo Wiese.
Earlier today it was announced on the Stock Exchange News Service (Sens) that Wiese had bought R1.9m worth of Single Stock Futures (SSFs) in JSE-listed Pallinghurst. He was able to secure these in the form of 9963 SSFs representing 996300 Pallinghurst shares at a price of R1.95/share.
This year, however, I am digging in my heels. The SABC is a corrupt organisation with an archaic business model, which is essentially a passive tax on the South African middle-class who can afford to buy televisions.
For starters, the concept of paying for a TV licence is archaic. The legislation that governs the implementation of TV licences was passed in 1999. I don’t pay to listen to the SABC-owned radio stations in my car every day (a useful service), why in the world would I pay for content I don’t use?
“I have seen the future and it is very much like the present, only longer…”
This quotation from the author of The Profit is perhaps one of the most apt descriptions of financial markets in 2012. With many predicting financial Armageddon and pointing to rising social unrest in Africa, Europe and the Middle East, the writing seemed to be on the wall for financial markets. When it became apparent that social unrest wouldn’t be a catalyst for a collapse in markets, the focus moved to the “fiscal cliff”, which was expected to create just enough uncertainty to push markets over the edge.
In 2009 I conducted what was arguably the most uncomfortable interview of my professional career