After an ugly year, the JSE may be set to rally
The JSE’s all share is down 16% this year, and the rand is one of the world’s most vulnerable currencies, so things can only go up
It’s been a rough year for South African stocks, but signals are emerging that they’re set for a rebound in 2019. Cheap valuations, flows into US exchange-traded funds (ETFs) and optimism among global analysts are some of the factors that suggest SA’s $445bn equities market may recover from its worst year in the past decade. A year to forget A rally can’t come soon enough for investors. The JSE’s main index is down 16% this year, the most on an annual basis since 2008. The return looks even uglier in dollar terms, with the gauge having lost 26%, the fifth-worst performance globally, according to data compiled by Bloomberg. Foreigners have sold a net $3.3bn on the stock exchange since January.
The euphoria after Cyril Ramaphosa become president in February — ending Jacob Zuma’s crisis-ridden tenure — proved short-lived, with South African assets and the rand battered as a strengthening dollar and worsening trade relations between the US and China buffeted emerging markets. Sent...
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.