As we plunge ahead into the second half of 2014, it is worth taking a brief glance back at the second quarter, which was an interesting one on many levels.
Amongst other noteworthy events, the JSE reached, which was at the time, a record high of 51 322. Unsurprisingly, this sparked excitement among the financial community and the media.
Other significant developments included the following:
• In May, consumer inflation continued to rise, reaching 6.6% – the highest in almost 5 years! The SA Reserve Bank’s target, it is worth noting, is 3% – 6%.
• The rand weakened slightly over the quarter, ending June at R/$ 10.64.
• Global Equity (share) markets rose in this quarter. Emerging markets recovered from previous lows. Two factors which have driven this rally:
o A reduction of tensions between Russia and the Ukraine.
o Speculation that Chinese authorities will take steps to stimulate their economy.
With regards to JSE sector returns, the following charts giving 1-year and 10-year returns to end June 2014 are very revealing…
Sourced from Coronation Fund Managers and Momentum.