The South African Market today
Major Sell off and Buying.
We are 3 days into the trading week and have already seen enough price action across the board for a week. Monday’s trading day was signified by selling across the board with only gold mining stocks being the gainers on the day on the JSE. On Tuesday there was an opportunity to buy the dips from the previous day with gold mining stocks seeing a sell off. This sort of market pattern is indicative of a market with no firm footing as new factors start to affect market participants perception of taking on additional risk. I am off the belief that the South African Equity market provides more value than most other stock markets, but the truth is because of the inter connectivity with global markets whatever happens offshore will affect us. As it seems that the delta variant is taking its course around the world it will be great to see the reaction from the rest of the world.
The volatility shocks that the ran experiences are part in parcel of how the world is viewing emerging markets. The rand was one of the best performing currencies in the past 12 months only for it to now becomes the worst performing currency in an amongst its peers. At the moment I do not believe there any issues which the rand has experienced except dollar strength on the back of a change in a hawkish tone with the fed. With the Non-farm payrolls coming out on Friday the rand is very fragile to any dollar shocks and seeing a stronger economy in the US will not bode well for the Rand.
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Learn and earn more today.
Visit our Education Centre