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Market Update

EB Market Update – November 2014

Global U.S.markets continued their meteoric rise with the S&P 500 reaching a new record high of 2075.76 intraday before easing slightly to close at 2067.56 on the last day of the month. The Dow Jones Industrial average also reached a new high to finish up 2.86% for the month with the S&P 500 adding 2.69%. Exceeding even these stellar performances the tech heavy NASDAQ Composite Index ended the month up 3.66%. Foreign stocks of other developed markets as reflected in the MSCI EAFE Index advanced 1.36% over the month but remained in the red for the year on fears that Europe might still lapse into recession. Read the full article Local In spite of a roller coaster ride over the month the JSE FTSE/ ALSI managed to end the month on a positive note closing at 49,911.37 points just shy of the psychological 50,000 and gaining 0.38%. In total return terms the index gained 0.54%. The...
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WM Market Update – October 2014

Global: US recovery continues Global equities delivered positive returns in October after experiencing sharp falls earlier in the month over concerns relating to global economic growth. The sell-off was on the back of weak U.S. retail sales data, lagging inflation in Europe and slowing growth in Asia as well as stuttering growth in Japan. Read the full article Local: The road map to safeguard the public finances The substantial market correction which had its beginnings late September continued during the early part of October but managed a last minute gain on the back of the surprise Bank of Japan announcement at month end that it was to substantially increase its quantitative easing programme. Read the full article  

EB Market Update – October 2014

Global: US recovery continues Global equities delivered positive returns in October after experiencing sharp falls earlier in the month over concerns relating to global economic growth. The sell-off was on the back of weak U.S. retail sales data, lagging inflation in Europe and slowing growth in Asia as well as stuttering growth in Japan. Read the full article Local: The road map to safeguard the public finances The substantial market correction which had its beginnings late September continued during the early part of October but managed a last minute gain on the back of the surprise Bank of Japan announcement at month end that it was to substantially increase its quantitative easing programme. Read the full article  

WM Market Update – September 2014

Global: September was a month of consolidation and some profit taking as world markets caught their breath after a period of considerable gains. The divergence in global economies became more apparent as the U.S. dollar continued its strong rise on the back of strong economic growth while the Euro continued its decline as a result of additional sanctions being imposed on Russia over the situation in the Ukraine. Read the full article Global: On the back of falling global commodity prices, an ever strengthening U.S. dollar and concerns over an oversupply of coal and iron ore, the FTSE/JSE ALSI retreated from its previous highs to close at 49,336 points following its all-time high of 52,323 on the 29th July. In total return terms the index lost 2.58% over the month. Pharmaceuticals were the best performers up 8.65% followed by beverages up 7.31%. The worst performers were Gold Mining down 17.46%, Industrial Metals down 13.55%...
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EB Market Update – September 2014

Global: September was a month of consolidation and some profit taking as world markets caught their breath after a period of considerable gains. The divergence in global economies became more apparent as the U.S. dollar continued its strong rise on the back of strong economic growth while the Euro continued its decline as a result of additional sanctions being imposed on Russia over the situation in the Ukraine. Read the full article Global: On the back of falling global commodity prices, an ever strengthening U.S. dollar and concerns over an oversupply of coal and iron ore, the FTSE/JSE ALSI retreated from its previous highs to close at 49,336 points following its all-time high of 52,323 on the 29th July. In total return terms the index lost 2.58% over the month. Pharmaceuticals were the best performers up 8.65% followed by beverages up 7.31%. The worst performers were Gold Mining down 17.46%, Industrial Metals down 13.55%...
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Market Update – August 2014

Global August saw U.S. markets roaring ahead with the S&P 500 closing the month at a record high 2003.37 points. The index gained 3.77% for the month with mergers and acquisitions providing the catalyst. The Dow Jones gained 3.23% and the NASDAQ 4.82%.The FTSE 100 gained 1.33% as U.K. GDP rose 0.8%. The Dax Composite rose 0.69% despite Q2 GDP contracting 0.2%.The Japanese Nikkei 225 closed 1.26% lower. The MSCI Emerging Market Index rose 2.07% slightly outperforming the MSCI World Index which rose 2.0%. Read the full article Domestic After a volatile performance in August the JSE/FTSE ALSI ended on a weaker note closing down at 50959.02 points having lost 0.46% for the month. The top 40 index declined 0.85% for the month. The best performing sector was Fixed Line Services which returned 15.06% followed by Non- Life Assurance which...
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Market Update – July 2014

Global July proved to be a mixed month for global equity markets with the MSCI World posting a -1.7% (USD) return dragged lower by Japan (-2.3%), Europe(-1.9%) and the UK(-1.9%), whilst the US bucked the trend posting 0.3%. Emerging Markets fared better with the MSCI EM Index returning 1.4% (USD) led higher by China and Indonesia. Global bond markets dropped 0.4% (USD), as measured by the Citigroup World Government Bond Index. Read the full article Domestic Locally, the JSE was up, returning 0.9% (ZAR) in July with Resources (5.1%) and Financials (1.2%) positive whilst Industrials fell 1%. Nominal fixed interest markets also reflected gains with the All Bond Index returning 1.0% while their inflation linked counterparts fell 0.1%. Following hard on the heels of a five month economically crippling strike in the platinum industry the 1st of July saw NUMSA...
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Market Update – June 2014

Global Global equity markets continued their upward trend with the MSCI World posting 1.7 %(USD) mainly on the back of strong US(2.1% USD) and Japanese(5.2% USD) gains with Europe flat(-0.1% USD). EM markets also benefitted from the risk on environment, posting 2.0% (USD) while global fixed income markets returned 0.4%(USD) in June. In the U.S.A. the Bureau of Economic Analysis announced a final negative 2.9% decline in GDP for the first quarter of 2014 which came as a shock following the positive 2.6% growth in GDP the previous quarter. Read the full article GTC Fund Performances The GTC High Equity Funds (previously Aggressive) continues to deliver outperformance relative to the inflation adjusted target. Over the past 12 months, the main contributors to performance have been the equity market and offshore allocation. 2014 has seen a reversal of last year’s trend...
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Market Update – May 2014

“Sell in May and go away” The time tested adage of “sell in May and go away” could yet prove appropriate as both domestic and major global stock markets rocketed to all time highs. One notable exception was the Eurozone where economies are only now showing signs of emerging from a double dip recession and company earnings are slowly improving from a very low base. Continued quantitative easing, manifesting itself in surplus liquidity in the hands of investors constantly seeking yield pick-up, remains a major factor driving investment markets. The levels to which many of these markets have now risen is beginning to seriously question how one can justify current share valuations. Despite weak growth, the U.S. economy contracted 1.1% in quarter one attributed mainly to inclement weather conditions, the S&P 500 reached all time highs during the month breaching...
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Market Update – March 2014

Risk off, risk on markets Domestic markets continued to display considerable volatility during March as both global and domestic events impacted on investment sentiment. In the earlier part of the month risk off was largely dictated by indications of a slowdown in Chinese economic growth impacting negatively on South African exports of raw materials. This slowdown has increased speculation in the Chinese financial sector that weakening growth will prompt government policy makers to reconsider their aversion to introducing broad stimulus measures. The Chinese government faces a precarious balancing act of reining in credit expansion that often fuels the risk of loan default, while averting an economic slump that raises the odds of higher unemployment. Read the full article   GTC Fund Performances The GTC High Equity Funds (previously Aggressive) have continued to deliver outperformance relative to the inflation adjusted target. Over the...
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