Weekly Market Update: 31 August 2015

31/08/2015

The week ended August 28th was a strong one for Emperor Asset Management, while Tuesday saw us have record days in the green. There has still been some concern for investors, with China and its Central Bank resulting in some major market volatility. The All-Share Index closed the week higher, up 1.91%. Gold mining saw quite a selloff, down 5.30% for the week. 

However it proved to be a decent week for Basic Materials, Industrials, Healthcare, and Consumer Services all upwards of 3%.

South African economic outlook:

The South African benchmark FTSE/JSE Top 40 finished the week in the green, up 2.26%. It’s year-to-date return is at 0.94%, showing little growth opportunities for the South African market. There has however been some exceptions, with Net 1 Ueps Technologies Inc, Cashbuild and Brait recording massive returns of 103.70%, 93.36% and 84.63% for the year respectively.

Among the Top40, Imperial Holdings Ltd was the biggest gainer, with 17.85%, while Sasol saw a slight recovery from the recent losses. Capital & Counties Properties was the biggest loser, shedding 3.56% for the week.

Emperor Asset Management, as mentioned above, managed to see a record day this week. The Robert Falcon Scott Strategy (RFS) and Sir Edmund Hillary Strategy (SEH) saw returns of 7.39% and 9.33% respectively on Tuesday, an all-time daily record high, while returns for the week were at 3.08% and 6.16%. Year-to-date figures are at 3.03% and 2.74% respectively.

Below is a summary of index returns as well as the best and worst performing shares for RFS & SEH:

Weekly_Market_Update_Graph_1_Aug_31

Weekly_Market_Update_Graph_2_Aug_31

Weekly_Market_Update_Graph_3_Aug_31


This week’s releases:

  • Bidvest Ltd June 2015, Final Results.
  • Cashbuild Ltd June 2015, Final Results.
  • Sanlam Ltd June 2015, Interim Results.
In international market news: 

The US and European markets ended mostly in the green, however Asian markets are still struggling, with economic growth in China still causing some fear among investors.

These are represented by the different regions as follows:

  • Americas (S&P 500: 0.91%, DJIA: 1.11%, Nasdaq: 2.60%)
  • Europe (FTSE 100: 0.97%, CAC 40: 0.95%, DAX: 1.72%)
  • Asia (Nikkei 225: -1.54%, Hang Seng: -3.56%)

In the news:

The major economic talking point for the past few weeks, and ultimately for the last two months has been China. While economic growth fears have been present for some time, the slowing down of their economy has ultimately seen a major decrease in the demand for most commodities such as gold, oil and iron ore, as can be seen in the recent selloff in equity prices (although this is not the only factor attributable to the recent global selloff).

The recent devaluation of the Chinese Yuan has also seen significant market volatility, which may further dampen demand for dollar denominated commodities as it would result in imports becoming more expensive to local investors in China.

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