Stock Watch - Stock picks — MTN and Investec
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Nesan Nair from Sasfin Securities chose MTN as his stock pick of the day and Mark du Toit from Oyster Catcher Investments chose Investec.
Nair said: "I'm going to go with the local stock, MTN. Mark mentioned this theme that it looks like some of the local shares have turned around earnings wise. We saw Telkom and MTN have very good trading updates, so I think maybe, potentially, fingers crossed, we could be seeing a turnaround in the telco space right now."
du Toit said: "We like the the SA banking sector and within that I'm going to go for the the higher risk option which is Investec. Domestics business of 60% South Africa and 40% UK and then within the business 70% banking and 30% wealth. They unbundled most of their holding in the asset management business Ninety One but they still have a 25% stake in the business which they will sell down over time. They're only trading at about 40% to book value, so there is quite a lot of upside to come but it does come with its risks"
Nair said: "I'm going to go with the local stock, MTN. Mark mentioned this theme that it looks like some of the local shares have turned around earnings wise. We saw Telkom and MTN have very good trading updates, so I think maybe, potentially, fingers crossed, we could be seeing a turnaround in the telco space right now."
du Toit said: "We like the the SA banking sector and within that I'm going to go for the the higher risk option which is Investec. Domestics business of 60% South Africa and 40% UK and then within the business 70% banking and 30% wealth. They unbundled most of their holding in the asset management business Ninety One but they still have a 25% stake in the business which they will sell down over time. They're only trading at about 40% to book value, so there is quite a lot of upside to come but it does come with its risks"