Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      South Africa loosens media ownership rules – but keeps one hand on the remote

      16 July 2025

      Eskom targets 32GW green energy shift by 2040

      16 July 2025

      MTN Group appoints new chief enterprise officer

      16 July 2025

      Kruger Park’s white rhinos get a hi-tech lifeline

      16 July 2025

      The real cost of a cashless economy

      16 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025
    • In-depth

      The 1940s visionary who imagined the Information Age

      14 July 2025

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025
    • TCS

      TCS+ | Samsung unveils significant new safety feature for Galaxy A-series phones

      16 July 2025

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025
    • Opinion

      A smarter approach to digital transformation in ICT distribution

      15 July 2025

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Investment » Old Mutual says local shares oversold, including MTN and Vodacom

    Old Mutual says local shares oversold, including MTN and Vodacom

    By Agency Staff4 November 2020
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    South Africa’s weak economy and poor growth prospects have hidden the “phenomenal” potential for the shares in some locally focused companies to deliver returns for investors, according to Old Mutual Investment Group.

    So-called South Africa Inc stocks have largely missed out on the 40% rebound in Johannesburg’s benchmark index from its March lows, an under-performance that is “not sustainable”, Meryl Pick, who helps oversee OMIG’s R10-billion Investors Fund, said during a webinar on Wednesday.

    “There are resilient and adaptive companies that can still outperform in a weak macro,” Pick said, citing stock-specific areas of the local market that the money manager sees as attractive.

    Pick pointed to South African bank valuations as an example, with lenders trading at the same price-to-book multiples they had in the 1980s, even though their businesses are much stronger with more robust balance sheets.

    Here are more of Pick’s views on “South Africa Inc” stocks:

    • MTN Group and Vodacom Group have benefited from work-from-home measures and have cut their costs in response to a low-growth environment.
    • Aspen Pharmacare’s deal with Johnson & Johnson to manufacture the US company’s Covid-19 vaccine will allow the healthcare firm to generate volumes at its manufacturing facilities.
    • Construction companies Raubex Group and Stefanutti Stocks Holdings are also favored, given their strong balance sheets and cost-cutting measures, and are poised to benefit from government infrastructure spending.
    • Italtile is poised to benefit from relatively low penetration in South African market.
    • Hospital operators are priced as if the current low occupancies and slow rate of elective surgery will continue indefinitely, but volumes will return. “We have seen that in the US; we will see that in South Africa.”
    • Among retailers, Massmart remains “exciting”, given its rationalisation and reorganisation.
    • Foschini Group’s acquisition of Jet has given the fashion retailer additional local manufacturing capacity and a new platform.
    • Shoprite’s online shopping business and restructuring of its portfolio has positioned it to emerge from the pandemic stronger than it entered it.
    • Retailers should also benefit from favourable lease terms with landlords in the wake of the virus.  — Reported by Adelaide Changole, (c) 2020 Bloomberg LP


    Meryl Pick MTN Old Mutual top Vodacom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleCxO Insights: Meet Pick n Pay CTSO Richard van Rensburg
    Next Article Renewable energy shift threatens 120 000 SA jobs: researchers

    Related Posts

    MTN Group appoints new chief enterprise officer

    16 July 2025

    South Africa’s telcos battle to monetise 5G as 4G suffices for most

    15 July 2025

    MTN empowerment investors see ‘modest’ return as Zakhele Futhi winds up

    15 July 2025
    Company News

    Ransomware in South Africa: the human factor behind the growing crisis

    16 July 2025

    Mental wellness at scale: how Mac fuels October Health’s mission

    15 July 2025

    Banking on LEO: Q-KON transforms financial services connectivity

    14 July 2025
    Opinion

    A smarter approach to digital transformation in ICT distribution

    15 July 2025

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.