Avior Capital Markets - Avior Financials | ASISA data | PSG | JSE trading stats | New retail banking offerings

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Avior Capital Markets

David Talpert ...

Harry Botha
Warwick Bam

Avior Financials | ASISA data | PSG | JSE trading stats | New retail banking offerings

We analyse ASISA's unit trust data to Mar '19. Over the past four quarters, average monthly net inflows (excluding money market funds) were R36bn.

PSG is trading at a 19.8% diluted discount to NAV. We maintain that PSG is expensive due to Capitec's elevated valuation (Avior's target price of R1100). However, at current levels we believe the discount offers a sufficient margin of safety.

The JSE Ltd's trading statistics (to 17 May â€˜19) show a 20.7% y/y decline in cash equity value traded YTD. A2X had a strong May with value traded of R217m to date. At current levels, we believe A2X will probably trade over R2bn in 2019. We note our JSE model assumes A2X value traded of R3bn (less than 0.1% market share) in 2019.

African Bank and Standard Bank launched new transactional banks accounts this week. We believe Capitec is most exposed to the direct impact of fee reductions. In our view, African Bank is a greater threat to Capitec than TymeBank.

28/05/2019 10 EN

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

David Talpert

Harry Botha

Warwick Bam

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Avior Financials | ASISA data | PSG | JSE trading stats | New retail banking offerings

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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