I believe that the chief reason that most of us agree to attend any meeting, function or gathering is the promise of some catering. A useful measure of the likely success of the get-together is determined by the ratio of the lavishness of the event to the cost for the participants. Dry sandwiches and things on sticks with a cash bar in the corner is a definite dud. However, the party in Nelspruit, jewel of Mpumalanga, at which a few hundred self-proclaimed VIPs celebrated the occasion of turning the first sod of the soccer stadium, must rank amongst the best of the year. Almost R1.5m of other people’s money (tax and rate payers I guess) ensured that very few who were there will have any recollection of the sod that was turned. However, all will look forward to the even bigger binge that will doubtless take place on the heady day when the stadium is actually completed (before 2010 we hope).
Despite the endorsement of the newly launched “Pimpjuice” by a senior politician from the ruling party, I doubt that there is much call for that particular beverage at these knees-ups. This non-carbonated sports drink is apparently named for “positive intellectually motivated persons”. This interpretation does not spring to mind when categorising the typical guests at a giant freebie of this nature.
I must admit that I thought that the National Treasury would mark the publication of the new tax forms with a glass or two of something fizzy but it seems to have been a laudable low-key event. I shall wait to see the forms before I pop a cork.
With suspicious regularity the All Share Index set another record high this week (it was on Monday) but has actually been range-trading between these new highs and the 28 000 level for almost a month. Whether this is a period of consolidation before another surge or the forming of a top, no one knows. What investors should be aware of is that so far in May the US dollar has firmed by almost 1% against the major European currencies (GBP, EUR & CHF). Against the Yen it has, however, done very little. Wall Street has at last stopped its almost unprecedented sequence of positive days and I am keen to see if this is a significant moment for the invisible whimpering bear. Something is happening, so keep a careful watch please.
Market news and gossip was dominated by two themes this week. Firstly, we enjoyed the story that at least one of the world’s major mining houses or something like that was being considered as a takeover target by one of the other ones or even by the world’s richest ukulele player or someone like that. This is probably another Pastorini event. That is, a market rumour which is characterised by little substance, scant truth and certainly no money. But the share prices ran nicely and alert punters made money. The second talking point was raised in the interim report from one of the country’s major furniture retailers. The increase in their provision for bad debts from within their sizable credit sales book raised eyebrows and fears that maybe this was sign that the South African consumer was starting to flag. Many of the company’s competitors say that they see no such thing so, as usual, confusion reigns.
Tomorrow Sharks and Bulls will be promoted to the status of the “Big Five” and tens of thousands of fans will be able to watch them in their natural habitat. This will be a unique event and it is hoped that it will end with a few dozen kiwis wishing they were not flightless.
James Greener
11th May 2007
