Latest market trends

The rand closed at its strongest this year at R14.26 against the dollar. The last time we saw a performance like this was in November last year.

When looking at the pound, all eyes are on Theresa May and her newly appointed cabinet ministers to see how legislation will possibly change and what type of tax will be levied.

This will definitely mean interesting times for the pound and it will be a good opportunity for South Africa to further current negotiations.

Oil prices were inconsistent – is there any relief?

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In February oil traded at $30 per barrel and in the last month it traded between $44 and $52 per barrel of crude oil. The hope in South Africa is that the rand will continue to get stronger and this will mean that we will be less affected by oil prices going up.

 

In the last seven days the all share index strengthened by 500 basis points and in June we saw an influx of investments on the JSE of over R63.8 billion. This shows faith in South Africa from international investors. In the last twelve days alone we saw international investments on the JSE of R29.7 billion.

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With the release of the latest data regarding tax-free savings plans, there is a lot of speculation about the benefit these hold for investors.

 We always advise investors to make sure as to what type of tax benefits they will get from an investment, as well as whether that specific type of investment fits into their investment portfolio. With this new tax free savings plan, we saw an average of 200 T12 (tax-free savings plans) being taken out. Not everyone necessarily benefits from this type of plan and it is important for an investor to find out how much of the R30 000 is actually invested, and how much of that goes to investment fees as well as unneccesary asset management fees.

It is tax season – how can investors make tax-savvy investments?

As always, firstly ensure you are getting advice from an accedited financial advisor to ensure you get the maximum benefit and returns from your investment. Another good option to consider would be investing in listed preference shares, which will give you an after tax benefit, or capital gains products or shares. These type of products are still more cost effective than income tax which is interest bearing.