WATCH: Stock pick — Rio Tinto

Graeme Franck from PSG Wealth Sandton Grayston chose Rio Tinto as his stock pick of the day.

“I’m going to go offshore, we just recently added Rio Tinto to our list offshore and the market is telling you that iron ore prices have run a little too hard. I know prices are at 80% in the last year-end; I think that’s why Rio is trading on a PE [price-earnings ratio] of around seven times, which is very very cheap.”