Market report

Let’s look at the good news first: Most of the SOE’s got new board members. They are the builders of capital projects in this country. This will take time to work out the corrupt elements and reduce the debt. This will take time though.

Now reality: The cash business holds in banks are at alarming highs. It escalated from R615m to R720m in less than one year. This means that business still do not have any appetite for risk. This is a time to take risk, develop new markets and products and employ people…. O, we have unions in RSA….

I hear that a market research found President Ramapoza to be to soft. He needs to come over much stronger in certain issues. This might help us to see the positive sentiment return faster.

The turmoil on the markets still is the daily issue! We see the ALSI rise by 2000 points just to lose all of it in so many days. The markets stay volatile. The exchange rate is helping quite a bit at this stage.

The Balanced funds are geared to grab growth outside the country and the current exchange rate is good for such a plan. This is the only place we saw a little growth in the last quarter.

The property portfolios still suffer from bad sentiment. Growth is slow but may return soon after the land debate comes to an end. We expect clarity soon.

Be safe!

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