Newsletter – 2nd May 2017

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May 8, 2017
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Newsletter – 2nd May 2017

Good day,

The producer price index (PPI) came in at 7.1% higher year-on-year in December 2016, Statistics South Africa said on Thursday. From November 2016 to December 2016, the PPI for final manufactured goods increased by 0.5%. For the year as a whole, PPI inflation averaged 7%, compared to 3.6% in 2015.

South Africa’s trade surplus for March 2017 improved by R5.2bn to R11.44bn from February. This is according to the South African Revenue Service (SARS) trade data for March 2017.

On Thursday, the Department of Energy announced fuel price increases effective from Wednesday, May 3. In Gauteng, the retail price of both grades of petrol, 93 and 95, will go up by 49 cents per litre, while the wholesale price of diesel sulphur will increase by 30 cents per litre.

The rand lost some ground against the major currencies, trading around R13.30 against the USD, while trading below R13 to the dollar earlier in the week.

The equity market performed well, with the all-share index (alsi) closing 3.11% stronger. The industrial and finical sectors led the market and added 3.14% and 4.29% respectively to the total gain. The resources sector gained 0.85%.

Restrained by weak consumer demand, 2017 got off to a sluggish economic start in the United States. The economy grew by only 0.7%, the weakest quarter of growth in three years. Looking ahead, forecasts for Q2 growth are running in the 3% to 4% range.

The European Central Bank (ECB) surprised markets by maintaining a muted tone. ECB President Mario Draghi indicated that downside economic risks had diminished, but offered no hints as to whether, or when, the ECB will begin to dial back its asset purchase programme.

Regards.
Eric Streso

Eric Streso

Although it’s easy to forget sometimes, a share is not a lottery ticket… it’s part-ownership of a business.

Peter Lynch

The producer price index (PPI) came in at 7.1% higher year-on-year in December 2016, Statistics South Africa said on Thursday. From November 2016 to December 2016, the PPI for final manufactured goods increased by 0.5%. For the year as a whole, PPI inflation averaged 7%, compared to 3.6% in 2015.

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.

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