Investors are set to face another volatile second half of the year as international tensions show few signs of abating and could hit emerging markets hard. The all share recovered 3.85% in the second quarter after falling 6.7% in the first. But last week the bourse came under pressure again, ending the week 1.66% in the red, the worst weekly showing since mid-March. It is down 5.28% so far in 2018. The first half of the year is usually a period of low liquidity on the JSE because of the extended holiday period in the northern hemisphere. But it tends to pick up later. The weaker rand is seem-ingly having little effect on rand hedges, with fears of a global trade war encouraging risk-off trade. The rand is still 7% weaker against the dollar for the year, despite last week’s stronger showing, but a rand hedge such as Naspers is not benefiting, having lost 2.26% so far in 2018. A renewed bout of higher tariffs slapped on China by US President Donald Trump raised fears of an escalated g...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.