Newsletter – 15th May 2017

Nuusbrief – 10de Mei 2017
May 23, 2017
Nuusbrief – 15de Mei 2017
May 23, 2017
Show all

Newsletter – 15th May 2017

Good day,

The South African political environment is heating up with the race to the December ANC conference in full swing. This week saw the reappointment of Brian Molefe as Eskom CEO, a move that attracted criticism from opposition parties and factions within the ANC.

The local market did not react to the political environment, but rather chose to move higher in line with some international counters. The JSE all-share index (alsi) closed 0.91% higher at 54 063.34 points. The market was driven mainly by financial stocks and this sector closed 1.44% in the green, on 15 058.13 points. The industrial sector added 0.87% to the index’s performance, while the resources sector only managed to close 0.43% higher.

The rand traded softer against the USD and euro but managed to gain against the British pound. The exchange rate of the rand was about R13.37 to a dollar, R14.61 to a euro and R17.20 to the British pound.

The Bank of England left interest rates unchanged at its rate-setting meeting on Thursday, but the Monetary Policy Committee slightly downgraded its economic growth forecast for 2017 to 1.9%.

US retail sales expanded at the fastest rate in three months in April, while prior months’ data were revised higher. Strong labour markets and modestly rising wages were supporting consumption. Consumer prices in the US remain subdued, rising 0.2% in April after falling 0.3% in March. The core consumer price index rose by 0.1% in April, up 1.9% compared to 2016.

The price of Brent crude oil rallied by about 3.44% and closed at 50.82 dollar per barrel. Gold ended the week 0.60% stronger at $1 228.46 per ounce.

Regards.
Eric Streso

Eric Streso

You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits.

Ben Graham

The South African political environment is heating up with the race to the December ANC conference in full swing. This week saw the reappointment of Brian Molefe as Eskom CEO, a move that attracted criticism from opposition parties and factions within the ANC.

Eric Streso
Eric Streso
Eric Streso holds 2 Law degrees, an international MBA in Financial Services, and is a Certified Financial Planner through the FPI. He has more than 20 years of experience in all aspects of financial planning. Eric is a passionate teacher; he lectures at a local Business School which certifies and qualifies financial service practitioners. He has held Senior Executive positions at Sanlam, PWC and mCubed.

Comments are closed.