Has The Recovery Started?

12 November 2018 | SA Views | Stephan Maritz

In my last article, I wrote about the correction that was ongoing in the market and the uncertainty with regards to how long it would last. Just after publishing, the market seemed to turn around. Below we take a closer look.

After the chaos and big sell-off over the last three months, the volatility seems to have slowed down and some sanity has returned to the market. Below is a weekly chart of the performance of the JSE All Share Index (ALSI). At the moment, the market is sitting at 6.2% above the most recent bottom which looks promising. It has, however, come down from the recent high during the last two weeks, due to renewed pressure on Naspers and other large cap shares like Richemont (CFR) which had very disappointing interim results.

(Click image to enlarge)image1

With Naspers always having a say as to where our market heads, below are some important upcoming events to take note of:

  • 14 November 2018 - Tencent quarterly results
  • 30 November 2018 - Naspers 6-month results

The general market currently presents some very attractive entry levels to either get into the market or add to existing exposure. This is not to say there won’t be more headwinds, but if you can stomach some volatility do not be scared to get in.

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Stephan Maritz
Portfolio Manager

Stephan is a portfolio manager and full-time trader. He developed his passion for the markets while working in the Stockbroking division of Standard Bank and is especially passionate about CFD trading. Stephan studied at the University of Stellenbosch and completed a BComm Honours (Business Management) with a focus in Portfolio Management and Bonds. He has also passed the JSE Equity Trader’s Exam, RE5 (Representative) and RE1 (Key individual) Exams as well as the Registered Persons Exams (RPEs) in order to give advice on equities.

The information contained in this article is for informational purposes only and must not be regarded as a prospectus for any security, financial product or transaction. It is neither to be construed as financial advice nor to be regarded as a definitive analysis of any financial issue. Investors should consider this research/article as only a single factor in making their investment decision. We recommend you consult a financial planner/advisor to take into account your particular investment objectives, financial situation and individual needs. The views and opinions (where expressed) in this article are those of the author and do not necessarily reflect the official policy or position of Sharenet.

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