Market Wrap - Stock Picks — Standard Bank and Old Mutual

Steven Schultz from Momentum chose Standard Bank and Old Mutual as his stock picks for the day. "My stock pick this evening, if you can ignore your generator for a moment and take a bit of a positive view on South Africa and the two stock picks are Standard Bank and Old Mutual both very correlated to the South African economy. I think it's no secret consumers are under tremendous pressure which is causing massive dislocations in terms of valuations. If we could get a little bit of good news in to the South African consumer and SA Inc I think Standard Bank is probably the best valuation out of the big four or five listed banks. It trades at a forward p/e or for price-to-book rather of 1.5 and versus long-term 1.6, 1.7. Target price probably suggests around 200 or trades at 164."