Market Wrap - Stock pick — Kumba Iron Ore

Andile Buthelezi from Sentio Capital chose Kumba Iron Ore as his stock pick of the day.

"Iron Ore has been decimated of with the Coronavirus outbreak, largely because China is a large player in the iron ore space but I'm encouraged by the fact that that new case virus growth in China has slowed down significantly. The government is encouraging workers to go back to work, they've announced stimulus package which will likely just stimulate that economic activity there and if you look at iron ore prices they've actually held up, so if you compare that to what the Kumba share price has done you'll see that there's a significant margin of safety to justified potentially taking a stake in that name. The one other thing worth noting is that I know iron ore stocks actually in China have started to come down and that indicates that maybe the steel producers are starting to draw on those inventories and starting to produce the steel so that demand is coming back."