JSE closed at its lowest point this year

Wealth

JSE closed at its lowest this year

The SA currency weakened to around R14.77 against the USD and R19.38 against the pound. The price of Brent crude oil reached $84.66 per barrel. The South African 10-Year Bond Yields eased again on Friday to close the week at 9.24%.

Equity markets ended weaker the past week as the JSE closed at its lowest point this year. The JSE all-share index (alsi) closed 2.17% lower, with the main contributors being the financial index that lost 4.84% and the industrial index that closed 3.37% lower.

The SA currency weakened to around R14.77 against the USD and R19.38 against the pound. The price of Brent crude oil reached $84.66 per barrel. The South African 10-Year Bond Yields eased again on Friday to close the week at 9.24%.

The oil price, US dollar and inflation rates are generally trending up, which does not present a sound backdrop for emerging market currencies. Historically, when the three move up together, emerging markets are caught in the crossfire. South Africa has not been immune to this international trend, and given our pre-election local political environment, investors decided to exit local markets.

The US and Canada have finally reached a new trade deal. The replacement of the current North American Free Trade Agreement (NAFTA) by the United States-Mexico-Canada Agreement includes revisions to auto manufacturing practices and fewer restrictions on US exports of dairy products to Canada.

The US nonfarm payroll rose to 134 000 in September, a lower level than the anticipated 180 000 job increase, and the smallest gain this year.

Asian markets traded lower on Friday as investors took profits. Mainland China was closed for the week for a national holiday. Weaker Chinese Purchasing Manager’s Index (PMI) numbers indicated that the Chinese economy could be slowing down. 

Back on local soil: With the much-anticipated Jobs Summit held last week now a thing of the past, questions remain on whether the resolutions inked by government and the private sector will provide sufficient relief to dent the 27.2% unemployment rate.

October is a high-risk month for the rand’s recovery as two events, in particular, looms large: the upcoming Medium-Term Budget Policy Statement, and a review of the country’s credit rating by Moody’s.

 

Kind regards

SECURITAS – Wealth Management




















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Johan Steyn, RFP®, Cell. 082 680 9510, johan@securitas.co.za

Albert van der Linde, B.Com (US), B.Com (Hons)(UP), Cell. 076 087 3084, albert@securitas.co.za;

Hannes Bresler, CFP®, B.Com (Hons)(UJ), Pr.Tech Eng, Cell. 082 823 7973, hannes@securitas.co.za;

Market data provided by I-Net | News article provided by Securitas with 4D Wealth