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The week that was..
The JSE started last week quite slow and most shares decreased on Monday and Tuesday as international investors continued to lighten their holdings in SA shares and bonds. The market was not helped by the announcement that the SA economy grew by only 0.7% in the third quarter as labour unrest in the manufacturing sector took its toll. Inthe 3 months to June the economy was still growing at a respectable annual rate of 3.2%.
The outlook for better economic growth still looks uncertain. The production price index increased by 6,3% in October - lower than the 6,7% of September - indicating high inflationary pressures in the economy.
The JSE got a bit of support on Wednesday and Thursday when shares of precious metal producers increased, pulling a few other commodity producers with them. On The markets were relatively quiet on Friday as Wall Street celebrated Thanksgiving with a shorter trading day on Thursday.
Shares ended the week mostly lower with only a hand full of the larger shares able to close higher than the previous Friday. AngloPlat (JSE: AMS), Anglo (JSE: AGL), African Rainbow (JSE: ARI), BHPBilliton (JSE: BIL) and Lonmin (JSE: LON) were the best performers amongst commodity companies.
Industrial shares seemed somewhat stronger than the rest of the market with Bidvest (JSE: BVT)' Nampak (JSE: NPK) and Imperial (JSE: IPL) showing strong gains. Naspers (JSE: NPN) increased to close to its recent high of R980 after announcing good results and giving investors a in depth rundown of future plans.
Bank shares, as well as those of other financial services companies, were also strong after figures from the Reserve Bank showed that credit extension increased slightly during October. Private sector credit growth increased by 7,6% in October compared to a year ago. Credit demand increased by 7% in September.
The week ahead
Investors can once again expect quite a boring week. There is very little economic news due and no results from large companies to set the tone in a specific direction. Foreign investors would properly continue to sell shares as continued increases in US markets are starting to convince world citizens that the recovery in these markets is gaining momentum.
Sanlam (JSE: SLM) is due to publish a trading update this week and Naamsa will announce new car sales figures for November. Car sales figures form an interesting leading indicator as increases in new car sales shows confidence in the future - no consumers or rental companies will buy cars if they are pessimistic about the economic environment over the next few years.
Shares to watch include the so-called defensive stocks, such as food and healthcare suppliers. Banks and financial services could also be more interesting this week, while Richemont (JSE: CFR) seemed to have started to attract some attention lately.
The JSE started last week quite slow and most shares decreased on Monday and Tuesday as international investors continued to lighten their holdings in SA shares and bonds. The market was not helped by the announcement that the SA economy grew by only 0.7% in the third quarter as labour unrest in the manufacturing sector took its toll. Inthe 3 months to June the economy was still growing at a respectable annual rate of 3.2%.
The outlook for better economic growth still looks uncertain. The production price index increased by 6,3% in October - lower than the 6,7% of September - indicating high inflationary pressures in the economy.
The JSE got a bit of support on Wednesday and Thursday when shares of precious metal producers increased, pulling a few other commodity producers with them. On The markets were relatively quiet on Friday as Wall Street celebrated Thanksgiving with a shorter trading day on Thursday.
Shares ended the week mostly lower with only a hand full of the larger shares able to close higher than the previous Friday. AngloPlat (JSE: AMS), Anglo (JSE: AGL), African Rainbow (JSE: ARI), BHPBilliton (JSE: BIL) and Lonmin (JSE: LON) were the best performers amongst commodity companies.
Industrial shares seemed somewhat stronger than the rest of the market with Bidvest (JSE: BVT)' Nampak (JSE: NPK) and Imperial (JSE: IPL) showing strong gains. Naspers (JSE: NPN) increased to close to its recent high of R980 after announcing good results and giving investors a in depth rundown of future plans.
Bank shares, as well as those of other financial services companies, were also strong after figures from the Reserve Bank showed that credit extension increased slightly during October. Private sector credit growth increased by 7,6% in October compared to a year ago. Credit demand increased by 7% in September.
The week ahead
Investors can once again expect quite a boring week. There is very little economic news due and no results from large companies to set the tone in a specific direction. Foreign investors would properly continue to sell shares as continued increases in US markets are starting to convince world citizens that the recovery in these markets is gaining momentum.
Sanlam (JSE: SLM) is due to publish a trading update this week and Naamsa will announce new car sales figures for November. Car sales figures form an interesting leading indicator as increases in new car sales shows confidence in the future - no consumers or rental companies will buy cars if they are pessimistic about the economic environment over the next few years.
Shares to watch include the so-called defensive stocks, such as food and healthcare suppliers. Banks and financial services could also be more interesting this week, while Richemont (JSE: CFR) seemed to have started to attract some attention lately.
