Market Update

Global – “The Trump Bump” World markets forged ahead in February, in many instances reaching all-time highs, largely on the back of expected US economic growth fueled by President Trump’s pledge of significant fiscal stimulus Read the full article Domestic – “Februarius Horribilis” Parliament took center stage this month with President Zuma delivering his State of the Nation address and Minister Pravin Gordhan presenting this year’s budget. The main theme of Minister Pravin Gordhan’s budget speech was: ”Our growth challenge is intertwined with our transformation imperative. We need to transform in order to grow, we need to grow in order to transform. Without transformation, growth will reinforce inequality; without growth, transformation will be distorted by patronage.” Read the full article

Global – “Let’s make America great” Global equity markets performed well in January with the MSCI Emerging Market Index outstripping the MSCI World Index as the risk appetite for emerging market assets returned. In US Dollar terms the MSCI World Market Index returned 2.35% for the month while the MSCI Emerging Market Index gained 5.45%. Hopes of extended fi scal spending in the US continued amid optimism over President Trump’s proposed tax cuts and higher infrastructure spending. Read the full article Domestic – A challenging 2017 The “Trump Trade” certainly proved beneficial for the JSE in January with the ALSI gaining 4.21% and 4.31% in total return terms. Not unexpectedly the RESI20 was the best performing major tradeable index gaining a solid 10.47%. The INDI25 returned 4.39% while the Financials FINI15 declined -0.99%. On the back of improved market sentiment... Read More

Global – “Let’s make America great” Global equity markets performed well in January with the MSCI Emerging Market Index outstripping the MSCI World Index as the risk appetite for emerging market assets returned. In US Dollar terms the MSCI World Market Index returned 2.35% for the month while the MSCI Emerging Market Index gained 5.45%. Hopes of extended fiscal spending in the US continued amid optimism over President Trump’s proposed tax cuts and higher infrastructure spending. Read the full article Domestic – A challenging 2017 The “Trump Trade” certainly proved beneficial for the JSE in January with the ALSI gaining 4.21% and 4.31% in total return terms. Not unexpectedly the RESI20 was the best performing major tradeable index gaining a solid 10.47%. The INDI25 returned 4.39% while the Financials FINI15 declined -0.99%. On the back of improved market sentiment the... Read More

Global – A Trump / Xi reconciliation? In November, US equities began on a very positive note with economic data continuing to impress. US payrolls added an above expectation 250,000 jobs, with the unemployment rate remaining steady at 3.7% and the hourly wage gaining 3.1% year-on-year. The midterm election results were as expected, with the Democrats gaining control of Congress – hence the results had little impact on the overall market. In spite of the positive economic data suggesting that the Federal Reserve might be inclined to put a foot on the brake, Chairman Powell surprised market pundits by adopting a more dovish approach and suggesting that additional interest rate hikes might be limited. Read the full article Domestic: 2019 – hopefully a new dawn? The local market struggled to find direction with the US/China trade spat continuing to weigh... Read More

Global – Keynes thinking returns! Political events continued to dominate global investment markets during the month with the surprise of the Brexit referendum being completely overshadowed by the shock election of Donald Trump as US President. The result saw a complete divergence in bond/equity performance in the US markets while the Dollar surged against most currencies and had a particularly negative impact on emerging markets. This was evidenced by the MSCI World Equity Index gaining 1.25% over the month in Dollar terms, while the MSCI Emerging Market Index declined -4.60%. Read the full article Domestic – Ratings escape? The local market was dominated by the long awaited rating announcements by two of the internationally recognised rating agencies, Moody’s and Fitch. Moody’s elected to maintain SA’s rating at Baa2, while Fitch affirmed their rating at BBB- but changed their economic outlook... Read More

Global – Keynes thinking returns! Political events continued to dominate global investment markets during the month with the surprise of the Brexit referendum being completely overshadowed by the shock election of Donald Trump as US President. The result saw a complete divergence in bond/equity performance in the US markets while the Dollar surged against most currencies and had a particularly negative impact on emerging markets. This was evidenced by the MSCI World Equity Index gaining 1.25% over the month in Dollar terms, while the MSCI Emerging Market Index declined -4.60%. Read the full article Domestic – Ratings escape? The local market was dominated by the long awaited rating announcements by two of the internationally recognised rating agencies, Moody’s and Fitch. Moody’s elected to maintain SA’s rating at Baa2, while Fitch affirmed their rating at BBB- but changed their economic outlook... Read More

Global – Interest rates? The FED’s folly U.S. markets fared poorly during October as continued talk of a rise in U.S. interest rates at year end adversely affected investor sentiment. This was evidenced by the MSCI World Equity Index declining -2.01%. The MSCI Emerging Market Equity Index gained a paltry 0.18% but year to date has returned 13.97%. In spite of the U.S. earnings season being in full swing with an excess of 60% of companies reporting better than expected profits, the S&P 500 declined -1.94% and the Dow Jones shed -0.91%. Read the full article Domestic – The long haul begins… The local market was very much focused on the Medium Term Budget Policy Statement delivered by Finance Minister Pravin Gordhan under the cloud of a threatened arrest on trumped up fraud charges, which were subsequently withdrawn. The Mini-Budget... Read More

Global – Interest rates? The FED’s folly U.S. markets fared poorly during October as continued talk of a rise in U.S. interest rates at year end adversely affected investor sentiment. This was evidenced by the MSCI World Equity Index declining -2.01%. The MSCI Emerging Market Equity Index gained a paltry 0.18% but year to date has returned 13.97%. In spite of the U.S. earnings season being in full swing with an excess of 60% of companies reporting better than expected profits, the S&P 500 declined -1.94% and the Dow Jones shed -0.91%. Read the full article Domestic – The long haul begins… The local market was very much focused on the Medium Term Budget Policy Statement delivered by Finance Minister Pravin Gordhan under the cloud of a threatened arrest on trumped up fraud charges, which were subsequently withdrawn. The Mini-Budget... Read More

Global – Come September, maybe now come December? August saw little change in the MSCI World Index which in Dollar terms delivered a paltry 0.13% for the month and which has returned 3.41% year to date. On the other hand the MSCI Emerging Market Index was up 2.25% for the month and has delivered a sparkling 12.53% year to date. The hunt for yield on the part of global investors continues to underpin emerging markets. Read the full article Domestic – Zumanomics Political events dominated the local stock market for most of the month with fears of the imminent arrest of Finance Minister Pravin Gordhan undermining investor confidence and playing havoc with the value of the Rand. Having climbed to R13.30/$, the continual threats being levelled at the Finance Minister saw the currency sink rapidly to near its previous lows. Read the full article

Global – Come September, maybe now come December? August saw little change in the MSCI World Index which in Dollar terms delivered a paltry 0.13% for the month and which has returned 3.41% year to date. On the other hand the MSCI Emerging Market Index was up 2.25% for the month and has delivered a sparkling 12.53% year to date. The hunt for yield on the part of global investors continues to underpin emerging markets. Read the full article Domestic – Zumanomics Political events dominated the local stock market for most of the month with fears of the imminent arrest of Finance Minister Pravin Gordhan undermining investor confidence and playing havoc with the value of the Rand. Having climbed to R13.30/$, the continual threats being levelled at the Finance Minister saw the currency sink rapidly to near its previous lows. Read the full article