Emerging Markets, Nvidia and BidCorp
Japan’s stock market closed at a record-breaking high, despite the central bank’s decision not to raise interest rates. This signifies a robust performance that has defied conventional expectations and has investors watching closely.
With the US debt soaring and potentially impacting its stock market performance, emerging economies such as India and Taiwan are poised for significant growth and present attractive alternatives for those seeking longer-term growth opportunities.
Global markets have been abuzz with NVIDIA’s performance, as the company’s earnings beat estimates. This highlights a burgeoning demand for AI-related chips, suggesting a transformative shift in the global economy. However, there’s a frenzy surrounding the stock, with debates on whether the short-term excitement justifies overlooking the valuation concerns.
In South Africa, the budget’s focus on consumer support has sparked a rally in the retail sector, which has outperformed banks and suggests a favourable short-term trade.
The Platinum Group Metals (PGM) sector experienced an unusual divergence, with one stock outperforming while others in the same sector faced declines, likely due to flow-driven movements. This sector, facing structural headwinds, may see a mean-reversion in the coming days.
In the S&P 500, energy and utilities sectors have outperformed, while the technology sector has taken a breather.
The latest addition to the ‘future hero’ list is Eli Lilly, with its dominant position in the burgeoning global weight-loss drug industry.
Looking ahead to late February and early March, investors are keenly anticipating the new strategy from PIK’s (Pick and Pay) CEO, Sean Summers. There’s also speculation about a potential capital raise to alleviate balance sheet stress, which could significantly boost investor confidence and share prices.
Lastly, BidCorp emerges as a compelling idea for retail investors, offering high growth potential and a hedge against the ZAR due to its offshore revenue exposure.
