Thank you for your continued loyalty. Below you can find our market commentary which takes a broad look at key events, decisions and impact-drivers from the last month, which offer a viewpoint as we look ahead.


With escalating tensions between China and the US over tariffs and an impending trade war, we are seeing a mixed performance on Wall Street. Asian markets are also feeling the pain as a result of this. This has had an effect on commodities such as Oil, which has recently seen prices fall. The price reduction is in part due to the clash between Russia and Saudi Arabia alongside their increase in output, which may again increase after last week’s OPEC meeting on Friday, 22nd June.

These effects from the US and China have seen the Rand coming under huge pressure, with the Dollar/Rand trading as high as R13.90. The Rand has been one of the worst performing Emerging Market currencies. As a result, we may not be seeing any interest rates cuts for some time.

The IMF is also raising concerns that global growth is at risk.


On the local front, Eskom has started load shedding again on the back of plant outages and a bottleneck in maintenance due to lack of resources. The protest action which arose on account of Eskom’s plan to not increase staff wages has also added to these burdens. Wage negotiations continue, however, unions have rejected Eskom’s latest offer of 4,7%. If it is not addressed soon, it will impact the economy and have a negative effect on manufacturing.

On the Bond side, investors have been selling off South African Bonds, which has seen the 10-year benchmark Treasury yields rise as high as 9.08%. Equities are expected to have a negative impact as a result of global market sentiment.


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