On the re­bound

Finweek English Edition - - INVESTMENT - GE­ORGIE EN­GEL­BRECHT

IN THE MIDST of global eco­nomic tur­moil, one coun­try still shines as a bea­con of growth among stag­na­tion – China. This re­newed growth was con­firmed by the re­lease of HSBC’s PMI data re­lease, which came in at 50.4, above the key 50 level and the first sign of ex­pan­sion in 13 months. In terms of South African eq­ui­ties, growth in China means one thing, in­creased de­mand for nat­u­ral re­sources. This leads me to this week’s punt – Assore.

Of­ten over­looked, Assore has of­fered steadily in­creas­ing re­turns over the years.

Assore is a min­ing hold­ing com­pany prin­ci­pally en­gaged in ven­tures in­volv­ing base min­er­als and met­als. The group’s prin­ci­pal in­vest­ment is a 50% in­ter­est in Ass­mang, which it con­trols jointly with African Rain­bow Min­er­als. Ass­mang mines man­ganese, iron and chrome, among oth­ers, all highly sought af­ter by the Chi­nese. As with most re­source stocks though, Assore isn’t cheap but with a healthy div­i­dend yield and solid long-term po­ten­tial, it’s worth a small per­cent­age of your port­fo­lio.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.