The South Africa Market today 01 December 2021

The South African Market today

The market continues to hang on to the weekly gains. After the shock the market experienced on Friday with a broad sell off in all assets but Gold and the dollar the market has found calm and returned to recoup all the losses which were bagged on Friday what becomes even more peculiar is the same reasons the market has used to drive the market lower is the same reason overlooked by the market to drive it higher the JSE TOP 40 index after Midday is trading above 1% as the fears of the vaccine not being effective against the new strain.



Unemployment problems

There is a bloodbath in the Job market, and this doesn’t bode well for the future of the South Africa. I consistently feel that not much attention is given to the unemployment crisis that South Africa is currently experiencing. Our unemployment rate hit a record 34.9% and the extended definition on unemployment hit a record 46.6% I think at times as people we look at the numbers as headline numbers and really don’t understand the social impact of the unemployment and not enough attention is given to the problem. The government of the day needs to look at the structural issues leading to unemployment as well as find ways to upskill the labour force and guide the skills in the right direction to meet the skills shortage. Government and business need to be at the forefront of tackling this issue instead of finger pointing it is not the government of the day who takes sole responsibility for crisis in the social context I hope that the dire situation South African labour force is in is seen by the relevant leaders. The Market may be detached from economic reality as the market sits at all time highs the economic situation in South Africa is not reflective. In the long run you will find the market will be impacted by the economic situation of the country even though there is temporary detachment.

Banks on the rise
Standard bank and the First rand group reported a stellar set of trading statement in Q2 the banks index performed impressively well with Investec and Capitec leading the gains for the banks there was a partial profit taking in the interim and there has been a resurgence in the price of the index since the sell off on Friday. Coupled with the great results it can be shown that the credit risk profile of the clients has improved, and it is showing in the banks results.