🇿🇦 Mzansi Market Memo — Tuesday, 22 July 2025

Moloweni gents and gentleladies.

JSE finished strong for the start of the week and looks like we’ll be breaching the 100,000 mark today if the trend continues. Hitting it might spark a small run or a selling point, anybody’s guess. We’ve got some activity back on the market and looking to be an interesting week.

Let’s get to the money.

⚡ Before the Bell

• 🌍 Global & Local Market Recap

  • JSE All Share Index: Up 0.98% - so close to 100,000 now!

  • USD/ZAR Exchange Rate: R17.71

• Stats SA today: reports dropping later today - follow the summary in tomorrow’s newsletter.

• Earnings today: VODACOM AGM; KAROO next quarterly results.

📣 SENS Roundup

1. 🧱 MAS Real Estate
   💥 Hyprop launches bid to take control of MAS
   MAS shareholders have been approached with a conditional voluntary offer by Hyprop to acquire a controlling stake. The deal includes a mix of cash (R24/share) and Hyprop shares, but MAS’s Independent Board has raised red flags over the rushed timing, lack of regulatory protections, and an unusually flexible offer structure.
   TLDR: This is a high-stakes move in the property sector — but it’s drawing concern for its aggressive structure and investor risk. A must-watch.

2. 🔌 Jubilee Metals Group (JBL)
   🪨 Record chrome output, platinum up too
   Jubilee reported 24.8% annual growth in chrome concentrate production and a 6% increase in platinum group metals (PGMs). However, an 11% drop in chrome prices may squeeze earnings — though this was partially offset by a 33% rise in platinum prices.
   TLDR: Strong operational numbers, but earnings risk remains highly exposed to commodity swings — especially chrome.

3. 🏗️ Mantengu Mining (MTU)
   🔐 Blue Ridge acquisition now official
   All conditions precedent — including ministerial approval — have been met for Mantengu’s acquisition of Blue Ridge Platinum. The mine will be consolidated into Mantengu’s books from 1 August 2025.
   TLDR: Mantengu just bagged a high-potential PGM and chrome asset. Big move for a small-cap.

4. 📊 Datatec (DTC)
   💸 Dividend results: R265m cash, R206m in new shares
   Datatec paid out R265 million in cash dividends while issuing 3.3 million shares via the scrip alternative — reflecting decent shareholder take-up.
   TLDR: Classic split — a sign that many investors still like cash in hand amid rate uncertainty.

5. 🏥 Assura plc (AHR)
   📉 Schroders trims stake below 5%
   Asset manager Schroders Plc has reduced its shareholding in UK-listed healthcare REIT Assura plc from 5.24% to 4.86%, as per a TR-1 notification.
   TLDR: A marginal move, but crossing below the 5% threshold triggers disclosures — worth noting for institutional watchers.

🧠 Exec Picks - tariffs and tariffs

1. Sasol: Institutional buyers are circling again
   🏭 After falling below R65 in May, Sasol has bounced back to R93, driven by rising oil prices and fresh institutional interest. Allan Gray and Coronation are buying in, citing the stock’s low price-to-cash-flow and a historic dividend yield near 13%. Meanwhile, a R4.3bn Transnet settlement helped clear legal overhang.
   TLDR: Sasol’s value case is back on the table — but debt, currency risk, and plant woes still linger in the background.
   Read more: Money Web

2. PIC bribery scandal deepens governance concerns
   💼 The PIC has suspended its Unlisted Investments head following allegations of soliciting a R3m bribe from a businessman who received R693m in funding. The scandal involves a stake in Metrofibre and whistleblower reports, and is under both internal and police investigation.
   TLDR: The credibility of SA’s largest asset manager is in the spotlight — key test for state-linked institutional trust.
   Read more: Daily Investor

3. Kganyago talks tough on tariffs, calm on inflation
   📉 SARB Governor Lesetja Kganyago reaffirmed that inflation is likely to remain within target for the next 24 months. But the real headache? Global tariff uncertainties, especially from Trump’s threats to impose duties on trade partners.
   TLDR: Rate cuts are still on the table — but not without global clarity. Expect a cautious tone at month-end MPC.
   Read more: Business Tech

4. SA trade surplus with US vs R253bn BRICS deficit
   🌐 SARS data shows SA runs a R37bn trade surplus with the US — but a massive R253bn deficit with BRICS. Trump’s looming 30% tariff on SA goods could jeopardise AGOA-linked exports, especially if a BRICS penalty is layered on top.
   TLDR: Losing US access would hurt more than BRICS helps — this fight has real macro bite.
   Read more: Daily Investor

🧾 Glossary: Market Moves Explained

When the jargon hits harder than a load shedding schedule, we’ve got you. Here’s your quick decode of today’s financial buzzwords.

• Conditional voluntary offer – A takeover bid that only proceeds if certain conditions are met (like regulatory approval or a minimum number of shareholders accepting). It’s “voluntary” because shareholders can choose whether or not to sell.

• Price-to-cash-flow (P/CF) – A valuation ratio comparing a company’s share price to its operating cash flow. It’s often used to assess whether a stock is cheap or expensive, especially in sectors like energy or mining.

• Dividend reinvestment (scrip alternative) – A payout option where shareholders receive additional shares instead of cash. This helps companies preserve liquidity while rewarding loyal investors.

• PGMs (Platinum Group Metals) – A group of six precious metals including platinum, palladium, and rhodium. Commonly used in catalytic converters, jewellery, and industrial processes.

• TR-1 Notification – A UK/EU regulatory disclosure required when an investor’s stake in a listed company crosses specific thresholds (like 5%, 10%, etc.). It ensures transparency in ownership changes.

😂 Meme of the Day

🧾 Final Word

It’s about to get busy with Q2 earnings kicking off. We’ll see more than 2,000 reports over the next three weeks so look out for your daily summary catching the key highlights. If there’s one you’d like to dive further into, let me know and we’ll add it to a Friday or Sunday edition. Good luck and let’s hope the JSE delivers this week.

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Mzansi Market Memo is compiled daily by Rayhaan @ the Memo for investors and operators who trade before the sun rises. *This memo is for informational purposes only. Not financial advice. Still, we’d buy low and read high.

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