Podcasts · WorldWide Markets with Simon Brown

JSE in the Cross Hairs (and Proposing Changes) | Don't Fight the Trend

11 Nov 2025 · 21 min · Episode 656

Worldwide Markets – Episode 656 (12 November)

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1) JSE Under Pressure 🏛️⚖️

Two issues in the spotlight:

a) Competition Commission Complaint A2X alleges JSE is being anti-competitive around BDA & settlement. This could have a long regulatory process. No quick outcomes expected.

b) Matengu Allegations Matengu alleges share price manipulation and claims to have emails implicating JSE directors.

• JSE has fired back and asked: Produce the emails. • There is also a clear seller overhang (ex-director wanting out), which explains the price pressure more plausibly.

Takeaway: Overhang selling often looks like manipulation. But without proof, it's just selling pressure.

2) Should We Scrap SENS Announcements & HEPS? 🤔📰

The JSE is consulting on two potential changes:

• Reduce some SENS announcements (e.g., administrative ETF notices, floating rate resets, etc.) • Possibly remove HEPS (Headline Earnings Per Share)

Simon's view: 🚫 Do not remove HEPS. HEPS is invaluable as an adjusted earnings measure, especially in SA where one-off corporate events are common. The process cost argument doesn't justify removing a critical metric.

4) Don't Fight the Trend 🟢📈

Two strong trends right now:

a) Gold 🥇

• Back above $4,100/oz after two brief red weeks. • Long-term trend still strongly up. • No point trying to call tops – enjoy the trend while it runs.

b) Rand 🇿🇦💪

• Strengthening since the "liberation blowout" in April (~19.90). • Now around R17.14 – and trend still down (strengthening). • This is not just USD weakness. • Big inflows into SA bonds + stronger commodity prices supporting.

Next key level: R17 → If broken, expect move to low R15s.

5) Results Round-Up 📊💼 Company Sector Key Takeaways Outlook Stor-Age* REIT / Self-storage SA strong, UK okay. Trading near NAV (R17.77). Yield ~7%. Fairly valued, solid operator. Premier Group Bread, food manufacturing Revenue +6%, HEPS +27%. Efficiency gains + declining input costs. Not cheap, but high quality compounder. GE Aerospace (formerly General Electric) Aviation Engines & Service 75% of commercial planes use GE turbines. Service business = high margin recurring revenue. Trend beneficiary as global travel grows. Expensive, but maybe deserved. 6) KAP (PG Bison, UniTrans, beds, auto aftermarket) 🛏️🚚🛠️

• Earnings slump → PE looked blown out, but forward expectations show return to single-digit PE once capex is absorbed. • Small-caps remain deeply unloved. • Worth watching, but needs a catalyst.

7) Gold Miners – Pick Your Favourite ⛏️✨

If gold keeps running, most producers will make serious money.

Simon's preferences:

• AngloGold Ashanti* (ANG) – strong price action, holding trends well. • Pan African (PAN) – up 7x since Oct 2022.

Others:

• Harmony – now has meaningful copper exposure. • Sibanye* – gold + PGMs.

ETF option: Satrix RESI* – doubled this year (helped heavily by gold).

⏳ How long to hold? While gold trend remains intact.

Events & Dates 🗓️

• Monday 17 November @ 10:00 – 91 Income ETFs webcast Book: justonelap.com/events • Friday 8 December – Final Power Hour: "Position Your Portfolio for 2026" Bookings open next week.

Simon Brown

* I hold ungeared positions.

All charts by KoyFin | Get 10% off your order

Links in the notes 2

• https://justonelap.com/events/
• https://www.koyfin.com/get-discount-from-a-friend/?ref_id=OkPOCaUd3dgHK16XlMxXM

The episode on the publisher’s site ↗ (opens in a new tab)