Anglogold Ashanti and Standard Bank
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Nick Kunze from Sanlam Private Wealth chose Anglogold Ashanti as his stock pick of the day and Gerbrand Smit from N-e-F-G Fund Managers chose Standard Bank.
Kunze said: "I'm going to go with the Anglogold Ashantiu, just from an inflation point of view it's a little bit of a tick up, it's coming back in a little bit of a risk off the last few days and I think something like Anglogold Ashanti which is well off its highs north and six hundred bucks or almost 75 dollars, I think it's worth a stay at these levels."
Smith said: " I'm head to go for Standard Bank, I've done it before as well at similar levels it went up to 140. I just think it's a bit of an overreaction the pullback at the moment. It's trading at a 1.1 price to book which is probably the right way of looking at the banks. It's five year median on that is 1.61 so I think it has about 30% upside from where it's at the moment. You're probably going to have positive earnings surprises with not all the losses being realized."
Kunze said: "I'm going to go with the Anglogold Ashantiu, just from an inflation point of view it's a little bit of a tick up, it's coming back in a little bit of a risk off the last few days and I think something like Anglogold Ashanti which is well off its highs north and six hundred bucks or almost 75 dollars, I think it's worth a stay at these levels."
Smith said: " I'm head to go for Standard Bank, I've done it before as well at similar levels it went up to 140. I just think it's a bit of an overreaction the pullback at the moment. It's trading at a 1.1 price to book which is probably the right way of looking at the banks. It's five year median on that is 1.61 so I think it has about 30% upside from where it's at the moment. You're probably going to have positive earnings surprises with not all the losses being realized."