Wednesday, 07 November 2012 - 20:00
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South African investors have experienced a golden decade. All asset classes have delivered high real returns over the past 10 years. The table below shows the annualised return of the different asset classes in South Africa over different periods.
From the table above we can see that over the last 10 years South Africa markets did very well, even when taking the market crash in 2008 into account. If you were invested into property you would have doubled your investment every 3 years on average.
The graph below shows how our market fared against its global counterparts. The values are all in rand terms.
From the graph above we can see that an investor would have been better off locally than abroad. The table below shows the cumulative and annualised returns for the different indices.
Over the past 10 years a few things worked in South Africa’s favour:
• The rand strengthened over the period from a very weak base
• Our economy was able to defy the naysayers
• Corporate earnings increased
• Ratings of South African companies increased (i.e. PE ratio’s increased)
• Bonds and properties re-rated
• Offshore assets performed badly due to high starting valuations and not due to poor earnings growth
Going forward can we expect another golden decade?
Unfortunately the picture is not as rosy. While some factors are improving, other factors are deteriorating. The rand is currently very strong and our local assets are expensive relative to their starting point 10 years ago. South Africa’s competitiveness has also been declining due to:
• High real wage increases
• Decreases in productivity
• Rigid labour laws
• Failing education system
It is very unlikely that we will be spoiled with similar returns over the next decade. This doesn’t mean that one should disinvest from the markets, as an investment into cash will guarantee that one loses capital on a purchasing power basis. Everyone needs to adjust their expected returns going forward and relook their investment plan to ensure that there’s enough saved up for the future.
021 914 4966
Wed, 07 Nov 2012
South African stocks ended slightly lower on Wednesday, tracking similar moves in major overseas markets as a resurgent euro zone crisis offset early relief at U.S. President Obama's re-election.
Gold's rally to two week highs
after U.S. President Barack Obama's re-election fizzled out on
Wednesday, with the dollar seen as a safe-haven as investor
focus shifted quickly to U.S. fiscal woes.
Fresh from a decisive re-election win, President Barack Obama returns from the campaign trail on Wednesday with little time to savour victory, facing urgent economic challenges, a looming fiscal showdown and a still-divided Congress able to block his every move.
Greek police fired teargas and
water cannons to disperse thousands of protesters who flooded
into the main square before parliament on Wednesday in a massive
show of anger against lawmakers due to narrowly pass an
Fresh from a decisive
re-election win, President Barack Obama returns from the
campaign trail on Wednesday with little time to savor victory,
facing urgent economic challenges, a looming fiscal showdown and
a still-divided Congress able to block his every move.
Shareholders were advised that the annual financial statements for the year ended 30 June 2012 will be posted to shareholders on 7 November 2012, and contain no modifications to the reviewed. . .
Good trading results were achieved in the second half and the group has delivered a strong performance for the 2012 financial year. Headline earnings per share are expected to be 40%. . .
Highlights for the quarter-ended 30 September 2012:
*Further strategic progress and a resilient operational performance
* Funds under management in core operations up 4% to GBP263.3 billion
*Q3 NCCF outflows narrowed to GBP(0.5) billion. . .
World Markets (Spot Prices)
|JSE Top 40||17:00||33294.09||-137.00||-0.41%|
|JSE Indust 25||17:00||37948.11||-238.00||-0.63%|
|Rand / Dollar||19:59||8.6470||0.0234||0.27%|
|Rand / Pound||19:55||13.7838||0.0243||0.18%|
|Rand / Euro||19:55||11.0338||-0.0126||-0.11%|
|Rand / NZD||19:59||7.1398||0.0064||0.09%|
|Rand / AUD||19:55||9.0030||0.0060||0.07%|
|Yen / Dollar||19:59||79.8800||-0.4880||-0.61%|
|Euro / Dollar||19:58||0.7836||0.0028||0.36%|
|Dollar / Euro||19:58||1.2763||-0.0046||-0.36%|
|Pound / Dollar||19:55||0.6256||0.0006||0.10%|
Click here for the Sharenet Spot Price page
The JSE Today
* Includes all listed instruments on the JSE
|Index Name||RP||Move||% Move|
|Financial & Ind. 30||41,364.00||-236.00||-0.57%|
|Oil & Gas ||28,302.00||121.00||0.43%|
|Oil & Gas Producers ||15,217.00||65.00||0.43%|
|Basic Materials ||27,854.00||-93.00||-0.34%|
|Forestry & Paper ||16,595.00||-151.00||-0.90%|
|Industrial Metals ||27,545.00||-351.00||-1.26%|
|General Industrials ||102.00||.00||0.30%|
|Consumer Goods ||38,071.00||-230.00||-0.60%|
|Automobiles & Parts ||7,219.00||132.00||1.86%|
|Health Care ||51,900.00||-346.00||-0.66%|
|Index Name||RP||Move||% Move|
|Food Producers ||64,815.00||-192.00||-0.30%|
|Personal Goods ||580.00||-9.00||-1.66%|
|Consumer Services ||80,320.00||-644.00||-0.80%|
|General Retailers ||65,843.00||606.00||0.93%|
|Travel & Leisure ||4,657.00||12.00||0.27%|
|Support Services ||2,347.00||-22.00||-0.97%|
|Non-life Insurance ||46,373.00||-331.00||-0.71%|
|Life Insurance ||23,827.00||-128.00||-0.54%|
|General Financial ||2,504.00||9.00||0.38%|
|SHARIAH TOP40 ||3,298.00||-12||-0.38%|
|FTSE/JSE SHARIAH ALL||3,400.00||-12||-0.37%|
|FTSE JSE Fledgling ||5,674.00||27||0.49%|
|FTSE/JSE Alt X ||1,098.00||9||0.84%|
|SA LISTED PROPERTY ||468.00||0.05%|
|CAPPED PROPERTY ||382.00||0.10%|
|FTSE/JSE RAFI 40||7,637.00||-32||-0.42%|
|Capped Top 40||17,570.00||-66||-0.38%|
|Capped All Share||18,955.00||-60||-0.32%|
|JSE TABACO ||5,605.00||18||0.33%|
Click here for the Sharenet Index Summary page
Latest Consensus Changes**
|REI||REINET INVESTMENTS SCA||HOLD||04/11/2012|
|AGL||ANGLO AMERICAN PLC||BUY||02/11/2012|
|CFR||COMPAGNIE FIN RICHEMONT||HOLD||01/11/2012|
|BIL||BHP BILLITON PLC||HOLD||31/10/2012|
|Expected||Company Name||Fin. Date|
|08/11/2012||ANGLD||September 2012 (Q)|
|08/11/2012||ANGLD-A||September 2012 (Q)|
|08/11/2012||ANGLD-B||September 2012 (Q)|
|08/11/2012||ANGLD-E||September 2012 (Q)|
|08/11/2012||CORONAT||September 2012 (Final)|
|ASCEN B||02/11/2012||23/11/2012||03/12/2012||R 0.0965|
|ASCEN A||02/11/2012||23/11/2012||03/12/2012||R 0.1791||
|WBOP||Wilson Bayly Holmes - Ovcon Ltd.||07/11/2012||Confirmed|
|WBO||Wilson Bayly Holmes - Ovcon Ltd.||07/11/2012||Confirmed|
|NHM||Northam Platinum Ltd.||07/11/2012||Confirmed|
Stock Exchange News Service
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