WATCH: Stock picks — Google and Hammerson

Jonathan Fisher from PSG Wealth chose Alphabet (Google’s parent) as his stock pick of the day and Chantal Marx from FNB Securities chose Hammerson.

Fisher says Alphabet is one of the biggest companies in the world.

“It also trades on a 24 price-earnings multiple, so relative to its peers in the market it is not too bad. In an offshore portfolio it certainly is one to keep.”

Marx says the property sector does not look particularly expensive at the moment.

“If you look at Hammerson, the company gives you exposure offshore with UK and European properties, mostly in the retail space. If you break that down even further it is mostly in the value retail space. They have these value retail parks, where you will find discounted luxury items. With the weakening of the pound and all the uncertainty around Brexit, it has become very attractive for Asian travellers to go to the UK, to these value parks, and load up on Louis Vuitton bags.

“Hammerson really benefits from this and are offering a 6% yield in pound terms, which is quite attractive at the moment.”

Source: businesslive.co.za