EB Market Update – January 2017

Global – “Let’s make America great”

Global equity markets performed well in January with the MSCI Emerging Market Index outstripping the MSCI World Index as the risk appetite for emerging market assets returned. In US Dollar terms the MSCI World Market Index returned 2.35% for the month while the MSCI Emerging Market Index gained 5.45%. Hopes of extended fiscal spending in the US continued amid optimism over President Trump’s proposed tax cuts and higher infrastructure spending.

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Domestic – A challenging 2017

The “Trump Trade” certainly proved beneficial for the JSE in January with the ALSI gaining 4.21% and 4.31% in total return terms. Not unexpectedly the RESI20 was the best performing major tradeable index gaining a solid 10.47%. The INDI25 returned 4.39% while the Financials FINI15 declined -0.99%. On the back of improved market sentiment the Platinum and Precious Metals sector gained 23.13% with Amplats rallying 32.85% and Implats returning 25%. The Property sector returned 1.63% while the ALSI 30 day volatility indicator reflected calmer market conditions decreasing from 15.51 to 13.27. The All Bond Index began the year on a positive note gaining 1.33% with the 12+ maturity sector gaining 1.40% and the 7-12 year maturity sector returning 1.28%. Foreign investors sold R5.3bn of local bonds during the month.

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