By Peet Serfontein, Motheo Tlhagale
Investec is an international specialist bank that provides a range of financial products and services to a niche client base in its core geographies, being the United Kingdom (UK) and South Africa. The company is dual-listed on the Johannesburg and London Stock Exchanges.
Investec is well positioned with its established platforms in the UK and South Africa to show decent earnings growth over time.
Technically, the share price moving into the lower 2Ó (standard deviation) zone of the linear regression channel makes the share an interesting candidate for a long position (see the insert on the main chart). This is a statistically significant support zone that has historically attracted buying interest. This area often marks value-based entry opportunities within a broader uptrend.
The price holding above key support reinforces the bullish outlook, highlighting the market's continued recognition of this level as a foundation for value. Sustained trade above support could fuel further upside momentum, increasing the likelihood of a trend continuation toward higher targets. If supported by rising volume and strengthening momentum indicators, this base may serve as a springboard for renewed strength within the broader bullish structure.
The weekly MACD histogram shows easing downside momentum, suggesting weakening bearish sentiment and potential early accumulation.
The declining On-Balance Volume (OBV) highlights weakening buying conviction. A rebound could signal renewed institutional buying, while a continued drop would indicate distribution pressure and potential downside risk.
| Share Information | |
|---|---|
| Share Code | INL |
| Industry | Financial Services |
| Market Capital (ZAR) | 122.8 billion |
| One Year Total Return | 1.06% |
| Return Year-to-date | 8.55% |
| Current Price (ZAR) | 130.80 |
| 52 Week High (ZAR) | 142.90 |
| 52 Week Low (ZAR) | 97.14 |
| Financial Year End | March |
| The share is trading above its 200-day simple moving average (SMA), signalling that the long-term trend is upward. | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY25 | FY26E | FY27E | FY28E | |
| Headline Earnings per Share (GBP) | 0.79 | 0.83 | 0.90 | 0.98 |
| Growth (%) | 4.56 | 8.84 | 9.23 | |
| Dividend Per Share (GBP) | 0.37 | 0.39 | 0.42 | 0.46 |
| Growth (%) | 6.85 | 7.69 | 9.52 | |
| Forward PE (times) | 6.97 | 6.40 | 5.86 | |
| Forward Dividend Yield (%) | 6.78 | 7.30 | 7.99 | |
| Sustained earnings growth over the medium term is expected. The dividend yield is attractive. | ||||
Buy/Sell Rationale:
Technical Analysis:
Fundamental view:
| Share Name and Position | OUT SA - Buy (Continue to hold) |
CLS SA - Buy (Continue to hold) |
AEL SA - Buy (Continue to hold) |
ARI SA - Buy (Continue to hold) |
|---|---|---|---|---|
| Entry | 73.75 | 365.58 | 19.03 | 184.00 |
| Current Price | 73.00 | 365.04 | 18.40 | 172.50 |
| Movement | -1.0% | -0.1% | -3.3% | -6.3% |
| Comment | A sustained bullish trend is developing, with the price action testing the 200-day simple moving average. Weakening downside momentum favours continuation. The profit target is set at R87.00, with an initial stop-loss at R69.00. | The share is forming an Elliott Wave one pattern while testing its 200-day simple moving average. Softening downside momentum supports the outlook, with a profit target at R413.00 and a stop-loss at R347.00. | A bullish pennant formation is developing, though the price remains below the 200-day simple moving average, making this a counter-trend setup. Weakening downside momentum supports the trade idea, with a profit target at R23.00 and a stop-loss at R17.50. | A falling wedge pattern is developing, with price action holding just above the 200-day simple moving average. Persistent downside momentum poses some risk to the strategy. The profit target remains at R227.00 with a stop-loss at R167.00. |
| Time to exit | 11 December 2025 | 18 March 2026 | 22 December 2025 | 17 December 2025 |
| Share Name and Position | VOD SA - Buy (Continue to hold) |
ANH SA - Buy (Continue to hold) |
SHP SA - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 132.90 | 1 031.56 | 278.33 |
| Current Price | 140.04 | 1 052.97 | 290.05 |
| Movement | +5.4% | +2.1% | +4.2% |
| Comment | A low-volatility phase suggesting market stability and potential accumulation remains noteworthy. The price is holding above the 200-day simple moving average, with weakening downside momentum supporting the outlook. The profit target is R157.00 with a trailing stop-loss at R131.00. | The price remains within an upward-sloping linear regression channel but below the 200-day simple moving average, making this a counter-trend setup. Weakening downside momentum supports the strategy, with a profit target at R1 255.00 and a trailing stop-loss at R964.00. | The price action within a well-established rising channel remains encouraging, with levels holding above the 200-day simple moving average. Sustained upside momentum supports the outlook, with a profit target at R312.00 and a trailing stop-loss at R276.50. |
| Time to exit | 11 February 2026 | 17 February 2026 | 09 December 2025 |
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