Floris Slabbert talks about investors’ tasks for the month of March on Die Groot Ontbyt.

 

Market update

  • The JSE All Share Index traded 210 points lower on Monday and this morning traded at 51 498.
  • This is in line with the performance of international indices like the NASDAQ, Nikkei, CAC 40 and the DOW 30.
  • The Frankfurt Dax lost a whopping 1.06% in yesterday’s trade.

 

The currencies

  • The rand is trading higher against most other currencies.
  • It is trading at just below R13 to the US dollar and gained 1.37% against the British pound in yesterday’s trade.
  • We expect the rand to maintain its strength for the next month or so, provided the political situation locally remains stable.
  • With this in mind, we are keeping a close eye on the SASSA debacle as the non-payment of grants will have a knock-on effect on the economy.
  • However, it is expected that we the GDP figures announced today will be better than expected and this will influence the currency positively.
  • Combined with the expectation of improved GDP figures, it is expected that export numbers have improved over the past quarter, especially in the motor industry.

 

Trump’s address lifts markets

  • Following US President Trump’s State of the Union address on 1 March, US stock markets reached record levels. This led to an astronomical inflow of capital of US$2.8 billion. Additionally, 17 companies reached record highs in their closing prices.
  • However, the market remains hesitant due to the lack of timelines and clear action plans in his announcements.

 

What’s can investors expect in March?

Traditionally, March is not a good month for investors. We therefore encourage investors to review and rebalance their portfolios during this time to ensure that their portfolio’s asset allocation is in line with their risk profile and investment goals. Similarly, investors should also ensure that their currency exposure is optimal.

 

Watch the full interview