The year 2016 was a tumultuous year for South Africa, overshadowed by domestic political ramifications and global events. The Nenegate saga at the close of 2015 caused a severe depreciation in the ZAR/USD exchange rate, further exacerbated by the unprecedented outcome of the UK Brexit vote.
07/12/2016 / Read Story
In light of the high PE valuation of our market, we have no other option to reduce our exposure in the market by 20% or so until we see further evidence of a recovery in global and local economic growth. For the reasons explained below, we do not envisage a sharp decline in the aggregate level of stock market levels, but we reiterate that the investment environment will remain challenging for the immediate future.
05/09/2016 / Read Story
The citizens of the UK have voted to leave the European Union. As this shocking result came in during the early hours this morning, markets reacted violently – the pound dropped from $1.50 to $1.34 (down 10%), the UK’s FT100 futures down to 5777 (-8%) and S&P500 futures in the US down 4.8% (at one stage 5% limit down).
24/06/2016 / Read Story
Market reaction since the trough recorded in January has been one of two days up and one day down, amidst extreme volatility. At the same time, we have seen a grand comeback of resource shares with some counters moving up close to 100%. Global factors appear to be abating amidst confusion over the FED’s continued hiking of interest rates, and the China slowdown. Positive and negative factors appear to be in balance.
23/02/2016 / Read Story