Swissquote Bank Research Team
Swissquote Bank Ltd
South Africa’s JSE 40 Index will expand more rapidly as President Jacob Zuma steps down, following a 9-year rule marked by corruption, pork-barrelling and incompetence. Successor President Cyril Ramaphosa, former African National Congress (ANC) party leader, is expected to drain the swamp, starting with an address to the nation today.
Investors are looking at a stronger rand (USD/ZAR at 11.58) along with higher equities: the JSE 40 reached 52’565 points (+4.27%), reinforced by Industrials (+10.44%), Consumer Discretionary (+8.01%), Financials (+6.69%) and Health Care (+6.59%). With December 2017 consumer prices up 4.7% annually, inflation is subdued. January 2018 Business Confidence increased to 99.7 from December’s 96.4 – its highest since 31 October 2015. December’s trade balance was ZAR 15.7 billion, suggesting a strong economic recovery.
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This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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