Just in: The South African Reserve Bank just lowered interest rates by another 1%, the second time in a month.
This puts the South African repo rate at a historic low!
We can write essays about what the lower interest rate means for business and consumers. But in short - lowering interest rates historically has meant one thing for gold. Its price goes up!
And as you can see in the c... ››› more
March will be known as the worst month of all-time for the South African rand.
With the ongoing lockdown, the increasing rate of COVID-19 cases, the crumbling economy, and the downgrading from Moody's - It's just been bad news after bad news for SA.
And what happened last week?
Well we saw the South African rand hit record lows passing through the R19.00 mark against the US dollar.
... ››› more
When is the right time to buy our market for the recovery?
That's the question I bet everyone's been asking.
We all know how lucrative buying the bottom following the 2008 financial crisis was…
And every investor certainly wants a repeat of that performance.
Five penny stocks for crisis profits
• How to pocket u... ››› more
The G20 summit in Osaka, Japan has just finished.
Who would have thought this two-day conference could have such an impact on our stocks, economy and even our currency.
And even the bullish sentiment towards the world markets and the US dollar, has left South Africa in a troubled state for the rand for rest of 2019.
Today I'm going to discuss two reasons why I expect the rand to we... ››› more
South Africans are at the edge of their seats, with what's going on this year.
From the ongoing US-China trade war, never ending Brexit decision, South Africa going back into the dark ages, the spreading rumours that the US is about to enter a recession this year - and this is just the tip of the iceberg for 2019.
The worst is yet to come. And it all starts, and ends, with the rand.
To... ››› more
The JSE remains in its consolidation phase but the current Rand weakness has created opportunities to buy some blue chips on the cheap.
The Rand has followed emerging market currencies lower over the past week on the back of concerns in Turkey. The Turkish Lira has more than halved in value as they deal with their own “Nenegate”.
The main reason for the Rand's significant weakness and ... ››› more
Global markets remain robust with no clear signs of a downturn as volatility slowly declines. Investors are buying even the smallest dip, which has seen the market remain in a bullish phase this past week.
On the currency front, we could see gradual rand weakness over the coming months due to the global interest rates rising.
A Federal Reserve member stated:
"Interest rates ... ››› more
On 4 May 2018 RECM and Callibre (JSE: RACP) announced that it is offering to buy out investors in Astoria shares (JSE: ARA).
Astoria shares traded at R11.71 that day, and RACP offered R13.50 per share.
That's a quick 15.3% gain investors can make, nearly instantly.
But is this a good deal, and should investors accept it?
SA’s new energy law could help make you 120% in the n... ››› more
Moody's and S&P ratings agencies will be announcing if they drop SA's credit ratings one more notch after the market closes on Friday.
Although Moody's signaled, it wouldn't be making any serious decisions before the 2018 budget, we had Minister Gigaba's mini-budget confirmed that South Africa's in crisis.
A strong focus is one of the core Pillar's Moody's considers when making a decision.... ››› more
AVI is a South African based company, listed on the JSE in the Food Products sector, and is centered on the FMCG market.
AVI's extensive brand portfolio includes more than 50 brands. The Group comprises of trading subsidiaries that manufacture, process, market & distribute branded consumer products.
AVI brands span across a range of categories including: hot beverages, sweet and savory bis... ››› more
Admittedly, I expected more movement in the Rand once the cabinet reshuffle was announced. We have a saying that “the Market always knows” which seems to apply in this case.
When Mr. Nene was removed, the Rand fell 8,5% within the first few days and then extended those losses by another 10% a few weeks later. By comparison the Rand has loss only 7% so far, perhaps the Market knew that SA I... ››› more
A week of heightened protests has ended and the ANC Cadre are holding the fort, for now. Their confidence masks the growing dissension from all sides, including members of its own party, eventually pressure will come to bear.
Fitch followed S&P in downgrading SA, but again the reaction was relatively muted. Clearly the market had been preparing for this eventuality. Of more concern is that som... ››› more
US markets closed at record highs on Friday, helped by technology stocks like Apple, Facebook and Google. The strength of the US markets is filtering through to other developed markets and the victory by Emmanuel Macron in the French elections eliminates one more hurdle. Improving global sentiment bodes well for the weeks ahead.
The rise in technology stocks is playing out nicely for our inve... ››› more
Local markets were slightly firmer across the board last week, assisted by some Rand weakness and better commodity prices. US markets were slightly softer, the UK rallied 1,8% while Europe was flat.
US economic data did not meet expectations, which has called the pace of continued rate hikes into question. The US dollar gave up ground against most major currency pairs. Political uncertainty re... ››› more
The Rand continued its slide last week as news emerged that Nationalising the Reserve Bank was discussed at the ANC conference.
Investors are not amused by the uncertainty the ruling party are creating, which is a recipe for further downgrades. And as mentioned in prior weeks, if our local currency and debt are downgraded we could see sustained Rand weakness. Bond yields would also spike as in... ››› more
I was wrong about the rand. I thought it was going to go up to R10 a dollar, but I'm not going to cry about it.
You can see looking at the USD/ZAR (United States Dollar versus the South African Dollar) weekly chart, a large wedge pattern formed from January 2016 up ‘till August 2017.
A wedge pattern is known as a reversal pattern where the price wedges down into a triangle formation. And a... ››› more
This might be the most important week for determining the market direction for the rest of the year, we have:
• A Fed announcement on their tapering on Wednesday
• A SARB announcement on interest rates om Thursday
• Futures closeout on Thursday
The market is expecting (with a 98.6% probability) the Fed to not pull the trigger on an additional rate hike. On the flip side, local inte... ››› more
JSE All Share marginally positive, up 0,7%
After several volatile weeks, due to policy uncertainty, some calm appears to have returned to the markets. The JSE All Share Index was up 0,7% last week. Resources were down 3%, while Industrial's up 1,8% and Financials' up 2,5% lifted the markets overall.
Brent Crude up 5%
Russia indicated it would support a cut in output if adopted by Opec. Ma... ››› more
Dischem is due to list on the JSE on 18 November 2016.
The company shared that it'll probably list at a price of R16.25 - R20.25. If demand for its shares is too high, it could increase the listing price.
Now, I must say, Dischem is a great business. It's doubled its number of stores since 2010, and tripled them since 2008.
It's clear that Dischem can take major market share from other co... ››› more
What you're about to read might be great for South Africans, but not so great for the UK.
Just a few months ago I was in London burning my fingers from every purchase. At the time the GBP/ZAR was trading at R23.00 to one pound.
So every item of clothing, gadget and snack I bought in Regent Street was around four times more expensive than here in SA.
MC Donalds alone on average was around ... ››› more
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