Trying to get a sense of the impact of last week’s riots I spoke with Chantal Marx of FNB on the impact on the retailers, with about 8% of their stores damaged to some degree or other.
I also spoke with Mike Flax, property director at Visio Fund Management on the damage to local listed real estate investment trusts’ (REITs’) malls and here the loss in this sector may be worse and take longer to repair due to shortages of materials such as glass, putting already-struggling REITs further onto the back foot.
Staying with the riots, I spoke to PwC economist Christie Viljoen. His firm already had a low GDP expectation for South Africa for 2021 and it now expects the riots to take some 0.4% off the year’s GDP. Post the violence it expects the South African consumer to continue to lead the economic growth.
Two new exchange-traded funds (ETFs) will be listing in August. The first is a global health ETF from Sygnia and the other a local inclusion and diversity ETF from Satrix. I chatted with Sygnia’s Iva Madjarova and Siyabulela Nomoyi from Satrix to get an understanding of the methodologies that go into these two new products.
One of the oddities of 2020 was a boom in house prices especially in the lower end of the market and I wanted to get a sense how this sector was doing so far in 2021. I spoke with Paul-Roux de Kock of Lightstone about the year so far and he says not only is the lower-end property market continuing to do well, but even the higher-priced units are selling well and experiencing price gains over the previous year.
Also this week:
New investors might opt for Pfizer, with its somewhat better metrics and yield, as well as its access to the mRNA technology, says Gary Booysen from Rand Swiss.