Image
Icon

Directory

IconAssociations and Institutes
IconBBBEE Consulting and Verification Agencies
IconBenefit Administrators & Investment Managers
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconEmployee Benefits Consultants
IconFinancial Planners
IconIndependent Principal Officer
IconIndependent Trustees
IconOmbud
IconPension Fund Adjudicator
IconPension Fund Trustee Liability Insurance
IconPension Fund Trustee Training
IconPublications
IconRegulatory Authorities
IconRetirement Advice
IconRetirement Funds registered by the FSB
IconRetirement Products
IconSocial Grants (Government)
IconTrust Establishment & Management
IconWellness Programs
Image
  Subscribe To »

Market Update: January 2017

Published

2017

Wed

15

Feb

 
 
 
 
 
 
 
 
 
Carl Roothman, chief executive of retail business
Sanlam Investments
 
 
 
 
 
 
 
Cape Town: The year 2017 started with world leaders decisively executing on voters’ wishes. Prime Minister Theresa May made it clear that there would be no half-measures when Britain exits the European Union. It will leave the EU’s single market and extend its trade freely beyond Europe. On the other side of the Atlantic, President Donald Trump signed into law an immigration restriction on seven Muslim-majority countries. Only a few days before the Dow Jones had shattered the 20 000 barrier for the first time, but Trump’s so-called ‘travel ban’ caused global equity markets to retreat somewhat from these record highs. The new law did, however, boost traditional ‘safe havens’, such as gold and the Japanese yen.
 
On the European continent there are signs of economic recovery, even if it’s happening slowly. The final Eurozone manufacturing PMI figure for December came in at 54.9 points, the strongest indicator of economic expansion since April 2011. European markets responded with a strong start to the year. German inflation accelerated to the highest rate since July 2013, while inflation across the Eurozone is starting to pick up. The European Commission reported that an index of executive and consumer sentiment rose to 108.2 in December. This is the highest reading in six years.
 
Locally, the tension between SA banks and factions within the ruling party mounted as a preliminary report prepared by the Public Protector on the alleged bank bailouts pre-1994 leaked to the media. As a consequence, the financial sector index did not partake in the exuberant start to the year. As in the US and Europe, SA is experiencing slowly rising inflation. SA CPI climbed to 6.8% year on year. Food prices increased the most in the past year, with the price inflation for food and non-alcoholic beverages up by 11.7%. PPI edged on to 7.1% year on year.
 
In contrast to the start of 2016, most markets kicked off 2017 with a spring in their step, with all major asset class indices up for January. The FTSE/JSE All Share Index (ALSI) gained 4.31% on a total return basis on the back of a strong resources and consumer goods run. The SA Listed Property Index returned 1.63% for the month and the All Bond Index (ALBI) and cash posted 1.33% and 0.63% respectively.
 
In dollar terms the MSCI World Index gained 2.41% and the MSCI Emerging Markets Index ($) returned a generous 5.47% to dollar investors. However, for South African rand investors the 1.53% appreciation of the rand against the dollar would have destroyed much of the MSCI World Index gain when converted back to rand.
 
Source: Stats SA, I-Net, Bloomberg, Deutsche Bank and Sanlam Investments | One-month total returns up to 31 January 2017.
 
Source: Atmosphere Communications
 
« Back to previous page Print this page » |
 

Breaking News »

10 years after sub-prime crisis global finance sector still ignores long-term risk

Markets unprepared for impact of energy transition and artificial intelligence   LONDON/NEW YORK: Ten years after the start of the subprime mortgage crisis analysts and investors still largely ignore ...
Read More »

  

Tax benefits of retirement annuities and Tax-Free Savings Accounts

By Roenica Tyson, Investment Product Manager at Glacier by Sanlam   Findings from the 2016 Sanlam BENCHMARK Survey show that many retirees’ income – even in the affluent market – is ...
Read More »

  

Liberty continues to preserve value despite challenging operating environment

Management takes active steps to address some of the shorter-term challenges   Financial Highlights Normalised headline earnings per share up 904. 5 cents Capital adequacy ratio strong ...
Read More »

  

Budget 2017: Long-term wealth planning essential to limit effects of new super tax rate in SA

Johannesburg: A total R28 billion in tax hikes were announced in the 2017/18 Budget, with personal income taxes for South Africa’s wealthy making up the bulk of these increases. In combination, amendments ...
Read More »

 

More News »

Image

Healthcare »

Image

Investment »

Image

Life »

Image

Short-term »

Advertise Here

Quick Survey »

  Sponsored by
Image
Does your company plan on hiring additional employees in 2017?


|Results »
Image
Image
Advertise Here

From The Glossary »

Icon

Evaluation Period:

The time interval over which funds assess an investment manager's performance.
More Definitions »

 
 
By using this website you agree to the Terms of Use.
Copyright © Stoker Risk & ICT (Pty) Ltd 2004 - 2017.
All Rights Reserved.
Icon

Advertise

  Icon

eZine

  Icon

Contact IG

Icon

Media Pack

  Icon

RSS Feeds