SA company listed as largest tech company in Europe
SA tech company largest in Europe
The past week also saw the unbundling of Naspers into Naspers and Prosus, the biggest corporate event in South African history and unlocked some value for investors in the largest counter on the local exchange. Prosus is now the largest listed technology company in Europe.
On Friday, the rand broke through the level of R15.00 to the US dollar to reach its best level against the greenback since end-July. The local currency was trading at R14.64 to the dollar, after reaching R15.47 as recently as mid-August. This is still way off its best level of R13.24, which was reached in February this year.
The currency received a boost from the decision by the European Central Bank (ECB) to cut its interest rate for deposits by 10 basis points to minus 0.5% – and its vow to keep it there for as long as it takes. The ECB hopes this will force banks to lend out money to boost the economy, as they will not be earning any interest by not deploying their funds. The ECB will also start printing money again. The rand was last trading at R16.15 to the euro and R18.01 against the pound.
Local equity markets closed the past week higher on the back of the stronger currency and some positive news from the international arena. There is mounting speculation that the United States and China will reach an interim trade deal. US President Donald Trump said his administration would consider an interim deal, although he prefers a full agreement. Each side took steps to ease tensions ahead of ministerial talks in Washington next week, followed by high-level talks in early October. China suspended tariffs for a year on certain imports from the US, including agricultural products such as soybeans and pork, cancer drugs and other products. For its part, the US postponed a tariff hike scheduled for 1 October until mid-October to avoid clashing with the 70th anniversary of the founding of the People’s Republic of China.
Locally, financial markets have been pricing in a downgrade for months, and the two other major rating companies have had SA on junk status for two years. Yet, Moody’s Investors Service said the past week South Africa’s investment rating is probably safe for another 12 to 18 months and President Cyril Ramaphosa’s government requires time to implement economic reforms, including fixing the loss-making power utility Eskom.
The past week also saw the unbundling of Naspers into Naspers and Prosus, the biggest corporate event in South African history and unlocked some value for investors in the largest counter on the local exchange. Prosus is now the largest listed technology company in Europe, not bad for a company from ‘the bottom of Africa’.
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Market data provided by I-Net | News article provided by Securitas with 4D Wealth
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