WATCH: Stock pick — Afrimat and SA bonds

Independent analyst Chris Gilmour chose Afrimat as his stock pick of the day and David Shapiro from Sasfin Securities chose SA bonds.

Gilmour said: “I actually do have a stock pick after weeks of sitting on my hands and saying one should sit on cash, I’m going for Afrimat.”

Shapiro said: “It depends on your tax position, but if you can go into some of SA’s long-end bonds, meaning 10 years plus and get 10%-11% yield in an environment where inflation is coming down, in an environment where, in the rest of the world, yields are zero or at best you can get 1%-2% on a 10-year bond in America, or 1%-4% in the UK, SA bonds look very attractive.”

Source: businesslive.co.za