Investec (INVP)

[dealtn]

Trading Statement released this morning

https://www.investegate.co.uk/investec- ... 00013441Z/

"A challenging economic backdrop, primarily caused by COVID-19 and associated lockdowns, resulted in reduced economic activity and increased market volatility. The first half of the year has seen lower average interest rates, reduced client activity and a 22% depreciation of the average Rand against Pound Sterling compared to the prior period."

It's hard to put some positive spin as the company has clearly suffered in the pandemic. Although with the share price down over 60% on the year reflecting that at least the entry point for potential recovery has some merit. Like much of the finance sector direction will be a function of whether worsening credit conditions, and the necessary adjustment to asset values turn out to be better or worse than expectations. The market is pricing in negative outcomes but the company claims, for those that invest on value criteria, a NAV North of 400p, compared to a market price around 135p. In the medium/long run it is hard to see how both of these measures can be right!