EB Market Update – July 2017
Global: Economic growth positive
In the US, all three major equity indices reached all-time highs with the S&P 500 gaining 1.93%, the Dow Jones 2.54% and the tech heavy NASDAQ 3.38%. The NASDAQ gain was largely driven by spectacular results from Facebook which saw the counter return a whopping 12.10%. The market was generally spurred on by significant improvements in economic data as well as further Dollar weakness.
Domestic: Political uncertainty remains
In spite of a deteriorating political situation, the local equity market shrugged off the negativity and experienced its best month for some considerable time. The re-emergence of a risk-on attitude,
particularly on the part of global investors, saw the JSE/FTSE All Share return a significant 7.03% in total return terms.
The suspension of the mining charter impacted the Mining Index which improved by a significant 17.91%. BHP Billiton returned 20.01% and Kumba Iron Ore 14.77% after it announced resumption of dividend payments. A welcome return of dividend distribution from Anglo American also cheered the market, the stock gaining 23.49%.
