Ashraf Mohamed from Arqaam Capital chose Standard Bank as his stock pick of the day, while Wayne McCurrie from FNB Wealth & Investments chose MultiChoice. Mohamed said: “It’s a short-term view of the banks. They have lost a bit of market share in the loan growth relative to the other banks and on its current rating, I think it’s expensive. If I had to do a long/short trade, it would long FirstRand, short Standard Bank.” McCurrie said: “I fully understand that there is still a big share overhang and I am not saying, ‘Go out and buy all the shares that you want to buy tomorrow.’ The share price could easily go below R90 per share again and maybe even lower. But, longer term, the share is actually quite cheap. Even if you can’t get more for your DStv premium, even if they keep discounting the subscription that they charge. They have good growth areas with great investments in Africa.”
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