Making Cents
“Here’s What Happened This Week”
14 August 2015
Compiled by Sheri-Anne Jacobs and Lauren Nash
Highlights
On Tuesday the 11th of August, the Chinese Central Bank took a decision to devalue the country’s currency, the Yuan. This was done to
stimulate economic growth in the country as the currency devaluation reduces the price of China’s exports. The Yuan dropped nearly two
percent against the US dollar post the announcement, the biggest drop in ten years.
Chart of the Week
The growing power of female entrepreneurs
Women are really taking a stand on the
entrepreneurial front. According to the Global
Startup Ecosystem Ranking 2015, the number of
female entrepreneurs has grown substantially in
2015. Eighteen percent of global startups were
founded by females in 2015, compared to roughly
twelve percent in 2012. The city of Chicago in the
United States boasts the highest number of female
entrepreneurs with thirty percent of new startups
being founded by women. This is closely followed
by Boston at 29%.
Although still significantly lower than the number
of new businesses founded by men, these rising
numbers display the increased influence of women
in the new business sphere.
Source: Forbes
Index
Index
value
YTD
1 year
3 years
5 years
Current
PE
LT Avg.
PE (10yrs)
CAPE (7yrs)
JSE All Share
51,375
5.6%
3.3%
58.8%
117.0%
19.4
15.0
17.9
Resources (Resi 10)
35,608
-12.5%
-36.6%
-17.1%
-11.6%
16.9
15.5
12.1
Financials (Fini 15)
17,126
12.8%
21.4%
90.5%
176.4%
13.9
13.0
15.0
Industrials (Indi 25)
66,379
8.5%
14.7%
102.6%
233.7%
21.3
16.9
29.0
Top 10 Gainers – across the JSE
Company/Stock
Top 10 Losers – across the JSE
HULAMIN
% Chg.
13.98%
1
MONTAUK ENERGY
-9.00%
2
GOLD FIELDS
12.61%
2
ALLIED ELE-N
-8.60%
3
ANGLOGOLD ASHANTI
3
TRUSTCO GROUP
-8.40%
4
AQUARIUS PLATINUM
12.45%
12.20%
4
BRAIT
-6.90%
5
HARMONY GOLD
11.88%
5
PSG GROUP LTD
-6.88%
6
PAN AFRICAN RESOURCES
6
LONMIN PLC
-6.55%
7
ASCENSION PROPERTY
10.40%
9.91%
7
CAPITEC BANK
-6.54%
8
ANGLO AMERICAN
7.28%
8
MASSMART
-6.38%
9
CLOVER INDUSTRIES
6.97%
9
GROUP FIVE
-6.06%
10
ARCELORMITTAL
6.90%
10
RICHEMONT
-9.00%
1
Performance Period: 06/08/2015 – 13/08/2015
Company/Stock
% Chg.
Quote of the Week
“Anyone who wants to sell you overnight success or wealth is not interested in your success; they are interested in your money.”
~ Bo Bennett
Did you know?
Multinational technology company Google announced this week that it will completely change its organisational structure. The
company says it will convert into a holding company with the name Alphabet, where Google will become an independent unit within
Alphabet. This will enable the company to separate its primary businesses, namely YouTube, Chrome and Gmail from its developing
businesses.
(Source: http://www.bidnessetc.com/49943-google-inc-converts-to-alphabet-what-analysts-think-about-the-move/)
Cannon Media
Victor Von Reiche, portfolio manager at Cannon Asset Managers discusses his stock pick on Business Day TV’s stock watch.
http://www.businessdaytv.co.za/shows/stockwatch/2015/08/13/stock-watch-pick
Weekly Highlights
Friday, 07th
Unemployment Rate (July) | US
The US unemployment rate was at 5.3% in July, unchanged from the previous month and in line with
expectations. Non-agricultural companies created 215,000 new jobs in the month of July, below economists’
forecast of 223,000.
Monday, 10th
Industrial Production (YoY) (June) | Eurozone
Industrial production in Greece declined 4.5% year-on-year in June. This comes after a 4.3% decline during the
previous month. This is the largest fall in the country’s production since August 2014.
Tuesday, 11th
Manufacturing Production Index (YoY) (June) | South Africa
Manufacturing production decreased 0.4% in June year-on-year. Some of the contributors to this decline were
reductions in the production of petroleum, rubber, chemical and metal products.
Wednesday, 12th
Industrial Production (YoY) (July)| China
China’s industrial production came in at 6% year-on-year, below the forecast of 6.6% and down from the
previous 6.8%.
Thursday, 13th
New Housing Price Index (MoM) (July) | Canada
Canada’s new housing price index increased by 0.3% month-on-month in July, below forecasts of 1%. July is
generally a slow month for real estate sales in the country; however price increases have been backed by higher
demand in a number of states.
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