Trading update : 13 February 2026

The latest risk to equity returns is systemic selling pressures from trend-following algorithmic funds. This latest development adds to further AI concerns, as the insurance and tax sectors are the latest to take a hit from displacement through automation.

However, savvy DIY investors are still finding pockets of opportunity – the world’s need for significantly more grid capacity is a case in point. While broader indices may be jittery, stock-picking remains “music to the ears” of the informed investor, from Spotify’s standout results to Coca-Cola HBC’s emerging market boost.

Systemic selling

US stocks faced more selling from trend-following algorithmic funds, according to Goldman Sachs Group Inc.’s trading desk. A Bloomberg report explained that a renewed decline could trigger about $33 billion of selling, and if the S&P 500 (VOO-NASQ) falls below 6,707, it could unlock up to $80 billion of additional systematic selling over the next month.

In a flat market, commodity trading advisors (CTAs) are projected to unload roughly $15.4 billion of US equities, and even if stocks rise, the funds are expected to shed about $8.7 billion.

Growing the grid

If you’re looking for the potential growth theme, consider companies or sectors needed to build out grid capacity. Using the EU as an example, Bloomberg highlights how the region has built renewable electricity capacity at an impressive rate, but transmission links remain limited, preventing clean power from being used efficiently.

However, EU funding covers only a fraction of the estimated €1.2 trillion investment needed by 2040 to modernise Europe’s grids.

AI displacement

Tax planning and wealth management stocks sank after financial software provider Altruist Corp. launched an AI tool for creating tax strategies, sparking concerns that traditional players could be at risk.

Altruist’s new tool helps financial advisors personalise strategies for clients and create pay slips, account statements and other documents. Insurance broker stocks had a similar meltdown after Insurify’s new rate-comparison AI tool raised concerns about companies in that sector.

Picking EM winners

According to data compiled by Bloomberg, earnings for the MSCI India Index are projected to grow about 8.3% over the next year, trailing other regional peers, with South Korea achieving 108%, Taiwan close to 30%, and roughly 16% for China – Clarity clients can gain exposure to the broad Chinese market through the iShares MSCI China ETF (MCHI-NASQ).

Diamond dealing

Angola is pursuing a 20% to 30% stake in Anglo American’s (AGL-JSE) diamond unit De Beers. Reuters reports that the proposal is being discussed with other diamond-producing African countries, citing a senior official from the nation’s mining ministry.

Bottling beat

Coca-Cola HBC (CCHL-TRQX) rose +4.68% following a strong set of results that came in around 3% ahead of consensus expectations. The bottling company reported 8.1% organic revenue growth and 11.5% organic operating profit expansion, driven by strong execution in emerging markets, where revenues were more than double that of developed markets.

Sustained momentum in energy drinks (+28.3% volume), and premium spirits (+24%) were key drivers. Interestingly, the company’s core sparkling category, which includes Coke, Fanta and Sprite, was only up a modest 2.5%. The company also gave a confident outlook statement despite macro and geopolitical pressures.

Flat, with no fizz

Coca-Cola (KO-NASQ) fell -1.5% after reporting figures for its financial year, with organic revenues falling short of Wall Street expectations at +5%. Volume growth was flat, with a modest 1% bump in Q4.

Pricing also fell through the floor as beverage companies (including Pepsi Co) have exhausted the pricing lever and are going big on promotional activity to preserve fragile volumes. Zero sugar was the only growth line across the broader sparkling category. The sports drinks category remained strong, up +5%.

Music to my ears

Spotify (SPOT-NASQ) had a very strong finish to its financial year, with all KPIs met or exceeded. These results should help ease investor angst as founder Daniel Ek transitions out of the CEO role.

Spotify proved it can grow its audience – monthly active users (MAU) were up 11%, beating Wall Street expectations – and its profits at the same time, even after raising subscription prices. Record free cash flow generation and a very confident message from the co-CEOs into 2026 supported a justified rebound, with the stock jumping +14.75.

Growth plans

Growthpoint Properties (GRT-JSE) sold its 55% share in Discovery’s phase 1 head-office building in Sandton for R2.32 billion while acquiring a 45% stake in Discovery phase 2 for R323.1 million. The company walks away with R1.99 billion from the transactions, which aligns with Growthpoint’s strategic portfolio rebalancing and capital-allocation plans.

Unbankable

The sale of Bidvest Bank to Access Bank was terminated after certain conditions were not fulfilled by Access Bank by the contractually agreed long-stop date. According to a statement from Bidvest Group (BVT-JSE), this failure resulted in the termination of the transaction. Access Holdings subsequently released a statement, explaining that the termination “reflects the complexities and extended timelines associated with multi-jurisdictional regulatory and transactional processes, rather than any change in the bank’s strategic intent or the assessment of the South African market”.

Stock focus: Pick n Pay

Despite a headline loss, a 48-week update from retail giant Pick n Pay (PIK-JSE) shows that group turnover grew by 3.2%.

This result was anchored by the exceptional performance of Boxer (BOX-JSE), which surged 12%, with a massive 32% leap in online sales, proving the brand’s digital agility and its dominance in the discount sector. The expected loss is largely a byproduct of a strategic, “one-time” restructuring, specifically the closure or conversion of underperforming stores, which is now nearly complete.

This suggests a leaner, more profitable foundation for the future. Furthermore, by identifying that the soft November performance was a market-wide trend rather than a company-specific failure, the data points toward a “value buy” opportunity: investors can enter at a lower price point while the company pivots toward its high-growth engines like Boxer and e-commerce.