Local markets closed above 58000 points for the first time in three years
Local markets closed above 58000 points
The rand broke through the level of R14 to the US dollar during the week
to trade at around R13.93 against the greenback.
The local markets continued their run for 2019 over the past week and for the first time in 3 years closed above 58 000 points. The all-share index (ALSI) closed 1.41% higher, supported by the industrial sector with a gain of 2.44%. Financial shares recorded a gain of 1.50%, primarily because of the strong performance by banking shares on the back of a stronger currency. The rand broke through the level of R14 to the US dollar during the week to trade at around R13.93 against the greenback. The resources index was flat for the week.
International markets remained uncertain, with the S&P 500 gaining 0.51%, the Shanghai composite losing 1.78% and Europe returning a mixed bag. Markets in the United Kingdom reacted negatively to the news of a postponed Brexit.
With the 12 April Brexit deadline looming, the European Council granted the UK a second, longer extension of Article 50. This extension means Britain now has until 31 October to advance through parliament the agreement negotiated with the European Union to withdraw from it.
The International Monetary Fund (IMF) has lowered its outlook for global economic growth, trimming its forecast to 3.3%, down from a 3.5% view in January. Slowing growth in China, spilling over from the US-China trade conflict and tighter financial conditions, contributed to the weakened global expansion, according to the latest World Economic Outlook from the IMF. Growth is expected to rebound in the second half of 2019 after a weak start, according to the report.
Citing policy and political uncertainty, the IMF lowered its forecast for South Africa’s economic growth in 2019, from 1.5 % to 1.3%. S&P Global Ratings was slightly more optimistic and forecast a 1.6% growth rate in its latest review, keeping SA’s foreign currency debt at junk status. The sticking point was the country’s poor economic performance, an official of S&P Global Ratings said.
As the April public holiday season draws near, enjoy the break and please drive safely.
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An investor who has all the answers doesn’t even understand the questions.
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