During the past week, South Africans expected to listen to the last state of the nation address by President Jacob Zuma. However, the event never took place as it was postponed indefinitely by Parliament.
During the past week, South Africans expected to listen to the last state of the nation address by President Jacob Zuma. However, the event never took place as it was postponed indefinitely by Parliament. Although the negotiation for the removal of Zuma is ongoing, it would seem that his exit is a given.
On the international front stocks suffered their worst weekly decline in two years, as investors appeared to worry about rising interest rates and elevated valuations. The major benchmarks fell largely in tandem, and all entered correction territory, off over 10% from their recent highs. Still, much attention was focused on the narrow Dow Jones Industrial Average, which suffered two declines on Monday and Thursday, exceeding 1,000 points – the largest in history.
European stocks plunged during a week of volatility and amidst rising fears about the global ramifications of a broad stock sell-off in the US. The UK FTSE 100 Index, whose companies earn much of their revenue from outside the UK, dropped to a one-year low, constrained by both the global rout in equities and a weakened pound. Germany’s DAX 30 and France’s CAC 40 were also weak.
The Japanese stock indices resumed their declines, following the US market’s lead. The Nikkei 225 Stock Average declined 8.1% for the week and closed on Friday at 21,382.62. Chinese stocks ranked among the biggest losers in last week’s global stock market sell-off, as domestic benchmarks in China slid more than 10% from their most recent peaks. The Shanghai Composite Index and Shenzhen A-Share Index dropped roughly 15% each from their latest peaks in late January. Meanwhile, the Hong Kong’s Hang Seng Index lost 9.5% for the week, its biggest weekly loss since the global financial crisis.
Our local markets did not escape the turmoil. The all-share index (ALSI) closed 9.40% lower from a high in January and traded at 55 902.62 points. South Africans last saw these levels in October 2017 at the beginning of the rally of 2017.
Hopes will be high this coming week for President Zuma’s final exit and for a rebound in global equity markets.
SECURITAS – Wealth Management
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