Schalk Louw | Mr Louwcal 🇿🇦 Profile picture
Portfolio manager & Strategist at @PSGInvest. Passionate about my family & investments. Tweets are not advice & are independent of my employer. Local is Lekker!

Jul 1, 2021, 10 tweets

UPDATE ON MARKETS: BIG breather from all things SA. FTSE/JSE All Share retracted by 2.4% during June, bringing year-to-date returns to 13.2%. SA Property stocks had a great recovery, increasing 3.4%. Despite having net foreign selling pressure, SA All Bond Index increased by 1.1%

2/9

Massive underperformance by the FTSE/ JSE All Share (-6.2%) versus the MSCI All Country World Index (+1.32%) in USD-terms. The 12-month performance for the JSE in USD terms still leads the MSCI ACWI’s performance by nearly 13%.

3/9

South African Small-Caps were less affected during June, declining by only 1%. Large Caps and Mid-Caps both declined by 2.6% respectively.

4/9

Foreigners were net sellers of both South African Equities and Bonds in June.

5/9

From a sectoral point of view, the biggest culprit for the decline came from the Resource Sector (-6.6%). Gold miners were the biggest loser in terms of attribution (compared to Capped Swix).

6/9

Rand’s value devalued by whopping 3.9% against USD in June. This was mainly USD strength as it devalued by only 0.8% against Euro & 1.1% against British Pound. Rand was also worst-performing BRICS currency in June, but maintained its number one status over a 5-year period.

7/9

The US M2 Money Supply YoY growth rate tapered off somewhat in May, helping the US Dollar to the detriment of Gold.

8/9

The US Dollar Index saw its best levels since the beginning of April 2021 and now trades above both its 200-day and 50-day Moving Averages.

9/9 & Final

Most commodities saw quite a bit of a selloff during June. Brent Oil however increased by 8%! Copper decreased by 8.8%, while Gold decreased by 7.2%.

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