What the Experts say

Although markets have already priced in his victory, the election of Barack Obama should provide some support for commodity prices and the JSE in the short run, analysts say. Americans elected Obama as their president on Tuesday, handing him an historic victory over Republican John McCain.

 6 October 2008 The global financial crisis Part 2: Reinventing the financial system The financial crisis that has engulfed the world since August 2007 has yet to run its full course but it is has already irrevocably changed the financial landscape, especially in the Anglo-Saxon countries. The investment banks that have been part of the

1 October 2008 The global financial crisis – Part 1: Implications for the real economy and financial markets Every week a new chapter is written in the unfolding drama that is the global financial crisis which has been gripping the world since August 2007. The possible future course of the crisis, the effect it could

The JSE All share gained a firm 2.19% (28 028) yesterday, as all the main indices closed in the green.  The local bourse ignored the stellar Producer Price Inflation figure for July (18.9% y:y) and interest rate sensitive indices advanced. Financials ended 3.05% stronger with Banks increasing 3.8%. Read on

In today’s newsletter we have a view from Max King of Investec on global equities and we share some thoughts on the local market from Sanlam Senior Equity Analyst Andrew Kingston The NICE decade for equities Max King, global strategist, Investec Asset Management, examines the long-term outlook for global equities Mervyn King, the Governor of

Significant declines in the FTSE JSE All Share, down 13.57% since only the end of June, have seen many investors abandoning ship. Others are now contemplating whether it’s time to significantly down weight equities in favour of more defensive asset classes. This correction has been marked by aggressive selling out of resource stocks (down 27.46%)

The resources sector (+2.5%) was favoured again yesterday, as commodity prices bounced back from year-to-date lows on renewed tension (especially surrounding the Russia/Georgia situation) and some pullback in the dollar.  The All share advanced 1%, to close just above the 27,000 points level. Gold miners jumped 2.5% and platinum miners advanced 0.9% after having been

The Monetary Policy Committee (MPC) of the South African Reserve Bank, decided this afternoon to leave the Repo rate unchanged on 12.0% per annum. The market (including ourselves) expected rates to be kept on hold. Despite the breather, consumers should remain cautious, as the Governor did mention that “we are not out of the woods

The JSE all share closed 0.42% higher yesterday as the bourse managed to close just over the 27 000-point level on the back of firmer commodity prices.  Resources were up 2.25% with BHP Billiton gaining 1.8% (R222.02) and Anglo American increasing 3.3% (R413).  The Gold mining index (+6.67%) was favoured, supported by the higher gold

The JSE All share ended the week’s first trading day in green territory, up 1.20% (27 320).  The bourse was supported by a strong performance in Resources (+3.17%) as a weaker U.S. dollar and higher oil prices buoyed commodity prices. Read on

Having read Thebe Securities’ most recent news letter reminded me that “no trend lasts for ever and that markets tend to overshoot….and that every trend creates the seeds for its reversal.  Although caution is necessary, it is just possible that we have seen an example of these two.” The JSE remained under pressure on Friday

What a bounce! The JSE made a huge recovery yesterday to end its four day losing streak, as the all share index jumped 4.16%, supported by a spectacular rise in financial (+6.7%) and industrial (+7.4%) shares. Financial shares in most global markets performed strong yesterday supporting sentiment towards the local banks.   These sectors have been

The price of oil recorded its second largest one-day drop ever seen, following the statement by Mr Bernanke that the U.S economy faces the dual threat of slowing growth and inflation, which points to lower U.S. demand for oil. Intraday the drop amounted to $6.44 per barrel (-4.5%), while compared to yesterday morning, the cooling

The price of oil recorded its second largest one-day drop ever seen, following the statement by Mr Bernanke that the U.S economy faces the dual threat of slowing growth and inflation, which points to lower U.S. demand for oil. Intraday the drop amounted to $6.44 per barrel (-4.5%), while compared to yesterday morning, the cooling

The big question for the economy this coming week is whether South African share markets will continue to follow the rest of the world. Therefore, what will happen to commodity prices and especially oil prices, the Dollar/Euro rate and inflation expectations? Read more