Samurai Summary: Top Tweets 11/09/2015

 Looks like tough times don't seem to be affecting shares in Capitec Holdings who over the year to date has been the best performing banker out of all the major banks on the JSE. This has left many frowning as to why this could be as the bank is the largest lender of debt not backed by assets and the economy has taken a turn for the worst.

There are a number of reasons to why this has occurred one of them being its inclusion into the JSE Top 40 index. Fund managers who mirror the performance of the index on behalf of investors scramble to accumulate enough weighting to align the share to exactly the same as the index. This applies demand pressure on the stock and results in the price going higher.

Another reason is the space within the unsecured lending market has been cleared when African Bank its major competitor filed for bankruptcy a while back with many of the other major banks cutting back on the amount of capital allocated to that area as fears are raised that the economic crunch will adversely impact those assets. This has allowed the company to dominate the space for some time.

 But one will only truly see the quality of those assets are when interest rate hikes start taking hold which is looking ever more probable given the weakness of the Rand opening the door for the SARB (South African Reserve Bank) to step into shield the currency.

As South Africa Reels, Bank to the Poorest Powers Ahead of Peers http://t.co/Ia8fcGJ34R

— Emerging Markets (@BloombergEM) September 11, 2015

But probably the biggest stimulant to the bank's performance stems from the lower transactional cost which come in the lowest amongst all their major peers particularly Barclays Africa Group (formerly ABSA) who they've been able to poach many clients away from. Simplicity of banking especially in an economy where literacy is so low will ultimately trump any sophisticated banking product.

Barclays Africa Group Limited $JSEBGA - HEPS increased 11% to 797c. Revenue grew 6% to R32,4bn. 13% higher ordinary DPS of 450c

— Travis Robson (@Travis_Robson) July 29, 2015

Results from Barclays Africa Group show revenues grew marginally which disappointed investors who were expecting more from the group. It would also seem that their focus on the African region for new opportunities to source growth might have been put back as a result of the commodity downturn.

Nedbank Interims - Headline Earnings +15.7% ROE 17.3% Interim Dividend +16.7% #Jse $JSENED

— IG South Africa (@IGSouthAfrica) August 4, 2015

Even with good looking numbers coming out from Nedbank couldn't impress the market as last month with the price dropping from a high of 27450 to under 22200, a plunge of about 20% in over a month. It should also be noted that they significantly reduced their exposure to the unsecured lending market.