Trading update : 21 November 2025

Nvidia calms the bubble talk, EMs attract flows, and local stocks see action

Markets got the reassurance they needed this week from Nvidia’s results, easing fears of an AI bubble and powering tech stocks higher. Meanwhile, emerging markets are pulling in fresh capital, helped by a weaker dollar and revived risk appetite. Locally, deal news and dividend yields are driving investor interest in JSE names, while warnings about holding cash are growing louder.

AI appetite still strong

Nvidia (NVDA-NASQ) once again showed why it’s the AI benchmark. Quarterly data centre revenue jumped 66% year on year and 25% quarter on quarter, with CEO Jensen Huang painting a picture of accelerating global AI adoption. Cloud GPU demand is through the roof, and “agentic applications” are the next wave. The market liked what it heard—shares climbed 5% in after-hours trading.

EMs pulling capital

Investors are steadily rotating into emerging markets, with $2.1 billion flowing into US-listed EM ETFs last week. That brings total year-to-date inflows to $32.2 billion. China and India continue to lead country-specific flows, with the rand also seeing gains.

China’s AI challenger

China’s Moonshot AI grabbed global attention with the release of its Kimi K2 Thinking model—an open-source AI challenger that’s now ranked second globally by Artificial Analysis, beating OpenAI on some problem-solving benchmarks. Its cost efficiency is drawing interest from US startups looking to build cheaper.

Cash is getting cold

At the Bloomberg Africa Business Summit, Investec and FNB investment heads doubled down on a key theme: cash is no longer king. Low real returns are a warning sign for retail investors hoping to sit on the sidelines.

In play: AB InBev, Freeport, Glencore

• AB InBev (ANH-JSE) is reportedly in talks to acquire BeatBox for $700 million, signalling a move into higher-growth beverage niches.

• Freeport-McMoRan (FCX-NASQ) revised down its Indonesian copper output after a mudslide, with new guidance roughly 10% below expectations.

• Glencore (GLNL-TRQX) is set to cut jobs at its last active ferrochrome smelter in SA, citing high energy costs and pressure from cheaper Chinese supply.

Ecosystem winners

Capitec (CPI-JSE) is gaining recognition as a strong ecosystem play. The bank is driving loyalty and cross-sell through merchant partnerships like Boxer and Dis-Chem, offering immediate value to clients and deeper data for the business. Investors looking for long-term “moat” strategies are paying attention.

Stock focus: Burstone

Burstone (BTN-JSE) delivered a solid update, with domestic property income up 5.3% and a juicy 10.5% dividend yield. Trading at a 17.6% discount to NAV, the REIT offers value for yield-seeking investors, with a 90% payout ratio and funds strategy gaining momentum.

Earnings under pressure

Life Healthcare (LHC-JSE) fell 9% this week after flagging weaker earnings following the sale of key business units. The stock hit its lowest intraday level since September, as investors recalibrate expectations.