MAKING CENTS
“Here’s what happened this week”
15 July 2016
Compiled by Sheri-Anne Jacobs and Jordan Weir
HIGHLIGHTS
The rand strengthened against all major currencies over the last week, even pulling back to R14.18 against the US dollar. The
JSE announced and implemented its move to T-plus-3 from t-plus-5. Trades will now settle in three days vs the archaic five day
turnaround time. US unemployment figures for June came out at 4.9%, slightly weaker than the previous month’s 4.7%. The
S&P 500 and Dow Jones indices both hit record highs off the back of the robust rebound after Brexit. Theresa May has been
selected as the U.K’s new prime minister. She is the second female prime minister since Margaret Thatcher. More than 80
people have been killed in Nice, France, after a terrorist ploughed a truck through a crowd on Bastille Day.
CHART OF THE WEEK
The Connected Car
The past year has seen a significant
increase in the number of connected
cars on roads around the world and is
generating a noteworthy amount of
revenue for both tech companies and car
makers. The increase in internet
integration and the use of it in these cars
will see a major transformation
automobiles as we know them.
Today’s chart looks at the estimated
number of connected car shipments over
the next few years. This chart shows the
number of shipments more than
doubling by the year 2021. In fact,
according to the BI Intelligence report,
more than 380 million connected cars
will be on the roads by the year 2021.
Tech companies will undoubtedly play a
significant role in the market for
connected automobiles and may even
decide to manufacture cars at some
point in the future
INDEX
Source: Business Insider
INDEX
VALUE
YTD
1 YEAR
3 YEAR
5 YEAR
CURRENT
PE
LT AVG. PE
(10YRS)
CAPE
(7YRS)
52837
4.2%
1.4%
29.7%
64.1%
22.4
15.0
17.9
32325
27.3%
-14.8%
-26.5%
-40.0%
25.4
15.5
12.1
14737
-3.3%
-14.0%
29.7%
80.1%
11.4
13.0
15.0
70656
-1.5%
5.2%
48.3%
149.2%
28.5
16.9
29.0
JSE ALL SHARE
RESOURCES
(RESI 10)
FINANCIALS (FINI
15)
INDUSTRIALS
(INDI 25)
TOP 10 GAINERS – ACROSS THE JSE
COMPANY/STOCK
%CHANGE
1
ALLIED ELECTRIC-A
25.3%
2
EXXARO RESOURCES
3
TOP 10 LOSERS – ACROSS THE JSE
COMPANY/STOCK
%CHANGE
1
PAN AFRICAN RESOURCES
-8.0%
18.0%
2
RCL FOODS
-4.7%
MONTAUK ENERGY
15.2%
3
MEDICLINIC
-3.7%
4
ANGLO AMERICAN
14.3%
4
REINET
-3.5%
5
KUMBA IRON ORE
13.1%
5
DISTELL
-3.2%
6
HULAMIN
10.0%
6
ASCENDIS HEALTH
-2.7%
7
LEWIS GROUP LTD
9.6%
7
RHODES FOOD GROUP
-2.4%
8
OCTODEC
8.5%
8
BRITISH AMERICAN TOBACCO
-2.3%
9
ARCELORMITTAL
8.1%
9
PSG
-2.1%
10
AFRICAN RAINBOW
MINERALS
7.8%
10
AFROCENTRIC
-2.1%
Performance period 08/07/2016 – 14/07/2016
QUOTE OF THE WEEK
"Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future."
~ Warren Buffet
DID YOU KNOW?
Pokemon Go, the new game released by consumer electronics company Nintendo, proved to be an absolute hit
when the game was released last week. According to data from Similar Web, the number of active daily users of
the new game could very quickly overtake that of Twitter. I fact, in just the past few days since its release, Pokemon
Go is already being used more than existing instant messaging apps. This comes after the company, Nintendo,
refused to create any smartphone games. However, the near eighty percent decline in software sales since 2009
may have been the push to offer gaming apps on smartphones After the Pokemon release, Nintendo’s stock price
jumped almost twenty percent in Tokyo on Monday.
https://www.statista.com/chart/4569/nintendo-s-software-sales/
IN THE MEDIA
Andrew Newell discusses general market news with Alishia Seckam on Business Day TV’s Market Analysis.
CLICK HERE FOR CANNON'S LATEST MEDIA EXPOSURE
WEEKLY HIGHLIGHTS
Nonfarm Payrolls (June) | U.S
Friday, 08th
The United States added 278,000 jobs in June, a substantial increase from the previous
month which saw U.S employers adding just 38,000 new jobs.
Housing Stars s.a. (June) | Canada
The number of new homes in Canada constructed in Canada picked up in June with the
total coming in at 218,333 units. Economists have been monitoring the housing sector in
Canada. The Bank of Canada has indicated that house price increases in certain prime
areas may not be sustainable.
Monday, 11th
Consumer Price Index (YoY) June | Germany
Tuesday,
12th
Germany’s consumer price index increased 0.3 percent year-on-year in June, and 0.1
percent month-on-month. This is still well below the European Union’s target inflation rate of
two percent.
Trade Balance CNY (June) | China
Wednesday,
13th
China’s trade balance declined to $48.11B in June from $49.90 as both exports and imports
to and from the country declined, indicating that the economy is under pressure. Weaker
global demand has contributed to the narrowing of the trade surplus.
BoE interest rate decision (July 14) | United Kingdom
Thursday, 14th
The Bank of England left interest rates unchanged at 0.5 percent. The expectation was that
the interest rate would be lowered to 0.25 percent. The minutes of the Monetary Policy
Committee’s meeting indicates the potential for a rate cut in August at the next MPC
meeting.
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