Global News:
- In 2017, the MSCI World Index is up 4.8% in dollar terms. The MSCI Emerging Market Index has gained 8.9% in dollar terms – this is its highest level since July 2015.
- The S&P500 Index has returned 5% in dollar terms in 2017 – this index has gained 12.8% since its low just after Donald Trump’s Presidential victory.
- Germany released its Q4 GDP estimate at 1.6% annualised, slightly below consensus expectations. Inflation in Germany is at 1.9% year-on-year.
Local News:
- The South Africa Budget Speech is taking place tomorrow, 22 February 2017.
- Due to the strength of the rand the mid-caps and small-caps are outperforming the ALSI top 40.
- In 2017, the ALSI has returned 2.7% while the JSE Mid-Cap Index has gained 3.9%, 26.9% for 2016, and the JSE Small-Cap Index is up 6.2% in 2017, reaching a record high, it returned 20.9% last year.
- Last January the rand was R17 to the dollar, last week the rand strengthened to R12.9 to the dollar (today it is R13.16). The rand to the pound is R16.35, in January last year the rand was R24.65 to the pound, this is a strengthen of 33%! This shows just how much the rand has strengthened over the last year.
- SA Listed Property has gained 3.2% so far in 2017, followed by: bonds 2.7%, the JSE ALSI 2.5%, and cash at 0.9%.
- In dollar terms though, the JSE ALSI has returned 7.6% this year, which is higher than the US stock market and the MSCI World Index. The JSE ALSI hit a record high since July 2015 – similar to the MSCI Emerging Market Index.
- The South Africa Consumer Price Index (CPI) came in at 6.6% year-on-year, and Core CPI at 5.5%. Both numbers have decreased from December – these inflation numbers do not put any pressure on the South African Reserve Bank (SARB) to hike rates in the near term.
Source: Dynasty, Stanlib, Efficient Select, Prescient, Moneyweb & Bloomberg Markets etc.
