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Port Elizabeth - The JSE continued to hit record after record last week as good news stoked investor confidence.
The first bit of good news was that the economy has expanded by 3.8% during the last quarter of 2013 - compared to the December 2012 quarter.
At the same time stronger growth in credit extention to the private sector indicated an improvement in consumer confidence and willingness to spend money.
Finance Minister Pravin Gordhan's budget also supported the market by showing that government remains committed to sound financial management - and doing quite a good job of running the country.
The rand recovered from recent lows towards the mid-R10 per dollar, after it seemed that the next stop is going to be above R12.
Increasing producer inflation - the jump to 7% in January shows that consumer inflation will remain high - was mostly expected and did little to curb enthusiasm in the market.
The week ahead
One does not know if the market will remain strong and chalk up record after record this week, or take a overdue breather.
There are valid arguments to feed both the bulls and bears, and speculators will have to keep their emotions in check more than usual.
FirstRand [JSE:FSR] is due to announce its interim results for the six months to December this week and Standard Bank [JSE:SBK] will announce its annual results.
Both are expected to be good overall.
Investors will, however, look hard at the provisions for bad debt, management's take on trends in unsecured lending and their expectations of the effect on increasing interest rates on the industry.
Mobile operator MTN Group [JSE:MTN] will announce results for the financial year to December.
The most interesting bits will be management comments on government's intentions to force mobile networks to lower charges when users phone from one network to another.
Changes in these exorbirant charges will have a huge effect on networks' profitability.
The annual results of financial services giant Sanlam [JSE:SLM] will probably be in line with the good results seen last week from Old Mutual [JSE:OML] and Liberty [JSE:LBH].
Aspen [JSE:APN] attracted a lot of attention on the market last week in expectation of good results due on Thursday.
Exxaro [JSE:EXX] will anounce annual results towards the end of the week.
It is expected to show higher earnings on the back of higher production and the benefits of a aweaker rand.
*After chasing money on the JSE for 15 years, Adriaan Kruger is now living a relaxed lifestyle in Wilderness and lectures economics part-time at NMMU.
The first bit of good news was that the economy has expanded by 3.8% during the last quarter of 2013 - compared to the December 2012 quarter.
At the same time stronger growth in credit extention to the private sector indicated an improvement in consumer confidence and willingness to spend money.
Finance Minister Pravin Gordhan's budget also supported the market by showing that government remains committed to sound financial management - and doing quite a good job of running the country.
The rand recovered from recent lows towards the mid-R10 per dollar, after it seemed that the next stop is going to be above R12.
Increasing producer inflation - the jump to 7% in January shows that consumer inflation will remain high - was mostly expected and did little to curb enthusiasm in the market.
The week ahead
One does not know if the market will remain strong and chalk up record after record this week, or take a overdue breather.
There are valid arguments to feed both the bulls and bears, and speculators will have to keep their emotions in check more than usual.
FirstRand [JSE:FSR] is due to announce its interim results for the six months to December this week and Standard Bank [JSE:SBK] will announce its annual results.
Both are expected to be good overall.
Investors will, however, look hard at the provisions for bad debt, management's take on trends in unsecured lending and their expectations of the effect on increasing interest rates on the industry.
Mobile operator MTN Group [JSE:MTN] will announce results for the financial year to December.
The most interesting bits will be management comments on government's intentions to force mobile networks to lower charges when users phone from one network to another.
Changes in these exorbirant charges will have a huge effect on networks' profitability.
The annual results of financial services giant Sanlam [JSE:SLM] will probably be in line with the good results seen last week from Old Mutual [JSE:OML] and Liberty [JSE:LBH].
Aspen [JSE:APN] attracted a lot of attention on the market last week in expectation of good results due on Thursday.
Exxaro [JSE:EXX] will anounce annual results towards the end of the week.
It is expected to show higher earnings on the back of higher production and the benefits of a aweaker rand.
*After chasing money on the JSE for 15 years, Adriaan Kruger is now living a relaxed lifestyle in Wilderness and lectures economics part-time at NMMU.
