Moneyweb News

15 March 2012 23:13

Market watcher & company news: Wayne McCurrie - Momentum Asset Management

Interviewer Profile

Alec Hogg is a writer and broadcaster. He founded Moneyweb

  • Follow Alec Hogg on Twitter
  • Email Alec Hogg
  • Visit Alec Hogg's website
  • Article tools

    Download this interview
    Print article
    Send to friend

    Subscribe to a daily email of transcripts from Moneyweb Radio

      Subscribe now

    ‘The closing prices could have been influenced by the futures closeout.’

    - DOWNLOAD THIS INTERVIEW

    ALEC HOGG: Wayne McCurrie is with Momentum Asset Management, usually in the studio. Tonight he’s stuck in traffic, or was. Wayne, it's good to have you on the programme. Let’s talk through these Remgro results. There are many shareholders who watch it eagerly. What was you take?

    WAYNE McCURRIE: Well, it's quite frankly as expected from Remgro. They’ve got a very diverse base, centred around FirstRand and financial services, but very big listed and unlisted industrial interests. And it’s a share that we own a lot of.

    ALEC HOGG: And the market generally today, Wayne? A little bit softer.

    WAYNE McCURRIE: Ja, but it's been so strong, Alec. I suppose you should expect a little bit of weakness coming through. But it's actually quite marginal and of course don’t forget today was futures closeout. So the closing prices could have been influenced by the futures closeout, especially when you see for no apparent reason a big company like SAB down 2% on the day. That's probably related to volumes because of the futures closeout. So don’t read too much into today’s prices. But we've had a very, very strong last week or so. So a little bit of red is not at all unusual.

    ALEC HOGG: Investec’s share price, though, was the worst performer on the Top 40 – clearly the market’s not happy with the information out of that company.

    WAYNE McCURRIE: Not happy with that. The thing with Investec is the shares look on the face of it incredibly cheap. All asset managers do some sort of normalisation. What that means is if you try and say if everything was just going as per normal, what would their earnings be, and what's the share price like relation to those earnings. And on that basis the share just looks incredibly cheap. But the problem is every time Investec announces results the results disappoint, and it makes you think: can they return to the old normal, or is there some – to coin a phrase – sort of new normal for Investec? So when you look at their results, the actual business that Investec is in is actually not doing so well. The specialist banking, the asset management that’s doing well, and Australia’s doing very, very poorly. They just haven't been able to return, let’s say, to the Investec of old. Their results by and large have just disappointed the market for a sustained period now and the share has come off, underperformed other banking shares quite materially over the last while.

    • Subscribe to a daily email of transcripts from Moneyweb Radio - click here

    The SAfm Market Update with Moneyweb is broadcast on SAfm 104-107fm, weekdays at 18:00 to 18:30.
    Site comments powered by Disqus
    JSE Today
    All Share
    Daily indicators
    Winners & Losers
    All share

    Blogs

    Sasha Planting

    Two RAs worth looking at

    10X Investments and Sygnia Financial Services compared.

    What to do when your retirement planning fails

    What if you don’t have enough money saved to retire?

    Retirement advice should come with an age restriction

    And the term ‘golden years’ banned.

    NEXT ON MONEYWEB X