Market Commentary: PMK Group

Market Commentary Latest Rates USD/ZAR 17.34 GBP/ZAR 20.73 EUR/ZAR 18.80 AUD/ZAR 10.48

GLOBAL

2020-03-25

Wall Street recorded gain on the $2TN boost: futures down on dire data and fears regarding premature opening of the US economy

The Bank of Japan took heart as the Nikkei surged back to the 19000 mark: having ploughed $9bn into equites via ETF’s in terms of its decade long buying programme, it was getting a little nervous as its portfolio dipped into the red with potentially adverse political consequences.

Republican lieutenant-governor Dan Patrick said “those of us who are 70 plus we’ll take our chances: but don’t sacrifice the country. Let’s get back to work.” Trump arch loyalist Lindsay Graham from South Carolina said “Try running an economy with hospitals overflowing, doctors and nurses forced to stop treating some because they cannot treat all, and every moment being played out in gut-wrenching detail in our living rooms, on TV, on social media.”

SA

The exceptional upside exhibited by US equities, an improved tone in the Asian region and slightly improved investor sentiment on the domestic market in the wake of improvement in short term metrics will encourage further upside in today’s session.

The traction should be slightly more modest in nature and very short-term traders should use the upside momentum of the next session or two gradually to book profits on trades which have enjoyed brisk upside. Short term metrics for the JSE-ALSH will continue to improve with the available evidence indicating that a move beyond the area at 41,800 to 42,100 points represents a realistic very short- term trading outcome.

The rand and its EM peers remain on edge as COVID-19 continues to have an intensely detrimental effect on emerging markets and risk assets. As governments and central banks around the globe have stepped in and introduced stimulus packages, both markets and investors are left wanting more as the risk of a global recession heightens.

References: PMK investment committee, Exchange 4 free , Momentum Investment Consultants, Momentum securities

On local shores, it seems the saying “Desperate times calls for desperate measures” has indeed become a reality, as South African’s around the country have been queuing and stocking up on supplies as the 21-day lockdown kicks in at midnight on Thursday 26 March.

Despite the nation going into lockdown as of tomorrow, we will be operating business as usual. Our team will be working safely from home, which means we are only an email or phone call away. Our land line will be rerouted to our individual lines should you need us : 010 007 1948