Vestact

Daily Market Blog: Skinny Trade-acino Please

06-DEC-19

Market Scorecard


Locally, there has been an interesting divergence between SA Inc stocks and the Rand. Over the last few weeks, local retailers and banks have seen their share prices sliding lower, but at the same time, the Rand has been rather resilient. It has actually gained a tiny amount of ground against the US Dollar. One theory is that the divergence is due to our high interest rates locally. High interest rates are not great for our economy, so retailers and banks suffer, but it is very attractive to international investors looking for yield on their money. With developed markets cutting rates and South Africa leaving them the same, more people will be parking their money here. The SARB has a fine balancing act between protecting the currency, keeping inflation in check and still keeping one eye on local growth.

The global market is still feeling good about a skinny trade deal being signed soon. The result was a green US stock market last night and a higher Asian market this morning.

Yesterday the JSE All-share closed down 0.44%, the S&P 500 closed up 0.15%, and the Nasdaq closed up 0.05%.



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Vestact manages money for private clients, in Rands in Johannesburg and in US Dollars in New York. We offer individualised investment accounts, and a high level of personalised service. Through low fees and effective stock-picking, we have delivered industry-beating investment performance. For a longer description of how we go about the business of asset management at Vestact, click here.

To open an account, call us on 078 533 1063, or come in and visit us at our offices at Suite 608, The Firestation, 16 Baker Street, Rosebank, Johannesburg.

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Stocks which we currently recommend

AdvTech is an African education group.

Alphabet (Google) is the world's biggest online advertising platform.

Amazon.com is the world's leading online retailer.

Amgen is a biotech company focussed on blood and cancer therapies.

Apple is the global leader in tablet and smartphone technology.

Aspen is a rising global star in the pharmaceutical industry.

AVI owns leading brands in the food and shoe sectors.

Booking Holdings is the biggest online travel booking service in the world.

Bidcorp is a foodservices company with operations mostly in Asia and Europe.

City Lodge is a mid-priced hotel group in urban areas of Africa.

Discovery is a technology-driven healthcare administrator and life insurer.

EssilorLuxottica is the world's largest branded sunglass maker and retailer.

Facebook owns Instagram, Whatsapp and Facebook.

Famous Brands is SA's largest quick-service restaurant group.

FirstRand is a banking holding company owning FNB, RMB and Wesbank.

Johnson & Johnson is the world's largest consumer health and pharma company.

JP Morgan is the biggest bank in the USA.

Illumina is the dominant manufacturer of genetic sequencing machines.

L'Oreal is a world leader in the manufacturing and sale of beauty products.

Long4Life is an investment company targeting the health and wellness sector.

MTN Group is an emerging markets mobile telecoms giant.

Mediclinic owns hospitals in SA, the UAE, the UK and Switzerland.

Multichoice is an Africa satellite TV and entertainment provider.

Naspers is the holding company of Prosus and South African internet companies.

Netflix is a TV & movie content creator & has a global, content streaming network.

Nike is a designer and retailer of running shoes and other sporting equipment.

NVIDIA is the world's leading chip maker for AI, cars, datacenters & gaming.

Prosus owns food delivery, internet, gaming and ecommerce businesses.

Remgro is a South African investment holding company.

Richemont owns the finest luxury brands like Cartier and Van Cleef & Arpels.

Starbucks is a roaster and retailer of coffee and fantastic foods.

Stryker makes hip and knee joint replacements and hospital beds.

Tesla is the world leader in electric vehicles and batteries.

Tiger Brands is a basic and branded food producer, expanding through Africa.

Uber is a ride hailing and food delivery company.

Visa is a global payments technology company.

Vodacom is a South Africa-based communications provider.

Woolworths the leading organic food & clothing retailer in the Southern Hemisphere.

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