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Market Update

WM Market Update – July 2015

Global In spite of concerns over a possible Greek default and subsequent exit from the Euro as well as the declining growth rate of the Chinese economy, developed markets continued to deliver positive returns in July aided by a constant fall in oil prices. Unfortunately emerging markets did not fare as well registering negative returns with currency weakness exerting even further downward pressure. Read the full article Domestic The JSE reacted, along with global markets, to the Greek monetary crisis but more importantly came under severe pressure from not only a sharp decline in commodity prices but also a sharp fall-off in demand from a slowing Chinese economy. In spite of the local currency trading at a 14 year low at R12.65/$, it did little to prevent resource stocks from being hammered. Read the full article  

EB Market Update – May 2015

Global – Do global markets need a QE reality check? Global equities managed a positive return for the month in dollar terms with U.S. markets reaching all-time highs before slipping back on a plethora of disappointing macro-economic data which suggested that U.S. economic recovery was faltering. The S&P 500 returned 1.29%, amid posting an all-time high during the month. Investors continued to view equities as the preferred investment option in spite of stretched valuations as bonds and cash delivered record low returns. Read the full article Domestic (sell in May and go away?) The saying has perhaps an element of truth in it as the local stock market came under considerable pressure at month end with the JSE/ALSI closing lower on nine consecutive occasions eventually closing down 3.95% in total return terms. Key economic indicators released in May resulted in increased market volatility with the ALSI 30 day volatility increasing from 10.43 to 11.20. Read the...
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WM Market Update – May 2015

Do Global Markets need a QE Reality Check? Global equities managed a positive return for the month in dollar terms with U.S. markets reaching all-time highs before slipping back on a plethora of disappointing macro-economic data which suggested that U.S. economic recovery was faltering. The S&P 500 returned 1.29%, amid posting an all-time high during the month. Investors continued to view equities as the preferred investment option in spite of stretched valuations as bonds and cash delivered record low returns. Read the full article Domestic (Sell in May and go away?) The saying has perhaps an element of truth in it as the local stock market came under considerable pressure at month end with the JSE/ALSI closing lower on nine consecutive occasions eventually closing down 3.95% in total return terms. Key economic indicators released in May resulted in increased market volatility with the ALSI 30 day volatility increasing from 10.43 to 11.20. Read the...
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EB Market Update – April 2015

Global First quarter company results in the U.S. came in better than expected in spite of dollar strength and this resulted in the benchmark S&P 500 gaining 1%. Further influencing factors were a recovery in crude oil prices together with a pick-up in merger and acquisition (M&A) activity. Read the full article Domestic In spite of growing concern around continuing labour unrest and the ongoing crisis at Eskom in terms of load-shedding, the JSE/ALSI continued to astound by reaching a new all-time high during the month, of 55188.34 points before closing down at 54440.43. The Index gained 4.33% and in total return terms 4.70%. Market volatility declined from 11.0 to 10.43. Read the full article  

WM Market Update – April 2015

Global First quarter company results in the U.S. came in better than expected in spite of dollar strength and this resulted in the benchmark S&P 500 gaining 1%. Further influencing factors were a recovery in crude oil prices together with a pick-up in merger and acquisition (M&A) activity. Read the full article Domestic In spite of growing concern around continuing labour unrest and the ongoing crisis at Eskom in terms of load-shedding, the JSE/ALSI continued to astound by reaching a new all-time high during the month, of 55188.34 points before closing down at 54440.43. The Index gained 4.33% and in total return terms 4.70%. Market volatility declined from 11.0 to 10.43. Read the full article  

WM Market Update – March 2015

Global Global markets continued their volatile ride as investors sought direction amid mixed news and concerns around a rampant US dollar and a slowing Chinese economy. The MSCI World shed 1.81% (USD), dragged lower by Europe (-2.56%) and the US (-1.44%) with Japan withstanding the negative sentiment posting 1.65%. Read the full article Domestic The South African economy was dominated by the ongoing fiasco at Eskom which is having a major impact on economic development as well as putting substantial pressure on an already weakened Rand. Minister Nene has projected economic growth for 2015 at 2.0% down from the 2.5% he indicated in October. For 2017 the indication is for 3%. Unfortunately these levels of economic growth project a muddle through economy for South Africa for some time to come. Read the full article  

EB Market Update – March 2015

Global Global markets continued their volatile ride as investors sought direction amid mixed news and concerns around a rampant US dollar and a slowing Chinese economy. The MSCI World shed 1.81% (USD), dragged lower by Europe (-2.56%) and the US (-1.44%) with Japan withstanding the negative sentiment posting 1.65%. Read the full article Domestic The South African economy was dominated by the ongoing fiasco at Eskom which is having a major impact on economic development as well as putting substantial pressure on an already weakened Rand. Minister Nene has projected economic growth for 2015 at 2.0% down from the 2.5% he indicated in October. For 2017 the indication is for 3%. Unfortunately these levels of economic growth project a muddle through economy for South Africa for some time to come. Read the full article  

WM Market Update – February 2015

Global – Interest Rates, the million Dollar question After a disappointing end to the previous month the S&P 500 reversed the trend snapping back 5.7% in February reflecting the growing hopes of a sustained long term U.S. economic recovery. Retail sales and durable goods orders have declined in recent months and the Conference Board’s consumer confidence index retreated from a seven and a half year high but neither of these factors had any major impact on the market. Instead investors concentrated on rising real wage growth numbers and consistently high growth in employment numbers. Read the full article Domestic – You win some, you lose some Finance Minister Nhlanhla Nene’s 2015 budget was much as expected save for the increase in fuel levies which was only made possible by the recent sharp decline in the oil price. Undoubtedly mindful of the country’s fiscal slippage and the ever looming threat of a possible sovereign...
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EB Market Update – February 2015

Global – Interest rates, the million Dollar question After a disappointing end to the previous month the S&P 500 reversed the trend snapping back 5.7% in February reflecting the growing hopes of a sustained long term U.S. economic recovery. Retail sales and durable goods orders have declined in recent months and the Conference Board’s consumer confidence index retreated from a seven and a half year high but neither of these factors had any major impact on the market. Instead investors concentrated on rising real wage growth numbers and consistently high growth in employment numbers. Read the full article Domestic – You win some, you lose some Finance Minister Nhlanhla Nene’s 2015 budget was much as expected save for the increase in fuel levies which was only made possible by the recent sharp decline in the oil price. Undoubtedly mindful of the country’s fiscal slippage and the ever looming threat of a possible sovereign debt credit rating...
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WM Market Update – January 2015

Global Global equities as measured by the MSCI World Index registered negative returns in January in dollar terms due to a weaker performance from U.S. equities. Commodity prices continued to fall with Brent crude oil dropping below $50 dollars a barrel. Read the full article Domestic In spite of the threat of load-shedding from Eskom and a downgrade in growth forecasts from both the IMF and World Bank the FTSE/JSE ALSI surprised market commentators by closing the month at 51266 points having breached the psychological 50,000. The ALSI gained 3.01% over the month and in total return terms gained 3.08%. The rapid decline in the oil price certainly helped boost market confidence. Read the full article