Petri Redelinghuys’ top three JSE stock picks
Petri Redelinghuys said he is focused on energy and commodities when discussing his top three stock picks at the most recent JSE SA Stock Picks event.
Therefore, he foresees Mondi, Exxaro Resources and Harmony Gold performing well.
Redelinghuys is a trader and the founder of Herenya Capital Advisors, with experience in various professional day trading firms, niche asset management, hedge fund firms and brokerages.
He regularly contributes to Finweek, Investors Monthly, and other financial-related media, including radio and television interviews on KykNet, SAfm, and others.
He said South Africa’s positive investor sentiment and more stable energy supply have given the country a much more positive backdrop in a turbulent geopolitical environment.
His top three stock picks have three things in common.
- They will benefit from the war in Europe ending
- They will benefit from Trump’s presidency and the pulling back of ESG rules
- The stocks trade at significant or near significant support levels.
Redelinghuys said that he bases his decision on a timeline of what he expects to happen in the future.
In the short term, he expects the war in Ukraine to end within the next six to twelve months and that global interest rates will continue to be lowered.
Over the medium to longer term, he expects these lower interest rates to usher in recessions.
Additionally, he said that the investor market has shifted from a buy-and-hold attitude to more opportunistic asset management and that more active asset management is needed.
For example, whilst Redelinghuys still has faith in volatile Sasol, he said the company’s often 20% fluctuations in asset price show the need for more active asset management.
However, he believes his top three stock picks are currently well-positioned to achieve attractive returns for shareholders.
Mondi
The company, which is primarily listed on the London Stock Exchange and has a secondary listing is on the JSE, is one of the companies Redelinghuys expects to be particularly positively impacted by the end of the war in Europe.
The paper and packaging manufacturer has had a R265 significant support level since 2015.
Redelinghuys said that the share price last hit that point in January 2025.
He views it as a good time to invest in this share which he said typically ranges between a share price of R265 and R372.
However, he also acknowledged that the company has been under pressure lately.
The company reported a basic earnings per share of €0.49 in December 2024, which was down 53% from the previous year.
Exxaro
Redelinghuys said that they think the coal producer Exxaro is positioned well for the future, especially as the world shifts focus back to dirtier forms of energy.
This also follows the US President Donald Trump’s campaign slogan of “Drill, baby, drill” and as the world moves away from chasing ESG.
He said Exxaro has had a R150 share price support level for the last decade.
He favours this company despite their previous CEO’s resignation following an investigation into “workplace conduct and governance practices”.
The company also reported a 36% fall in headline earnings per share to R30.16 for the year ended December 2024.
However, Ben Magara, a mining engineer with 35 years of experience, was recently appointed as the company’s new CEO, effective 1 April 2025.
Harmony Gold
With the constant great uncertainty characteristic of Trump’s presidency, the gold price is set to continue soaring.
Mining giant Harmony Gold – and its shareholders – have already reaped benefits from this higher gold price.
The company recently declared a record interim dividend, fueled by a soaring gold price, which saw its revenue from precious metal sales shoot up 19%.
Furthermore, the company has already had a good rally over the last decade with a support level share price of R191, which is even expected to trend higher, according to Redelinghuys.
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