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MAKING CENTS
“Here’s what
happened
this week”
10 March 2017
Compiled by Tlotliso Phakisi and Jordan Weir
HIGHLIGHTS
After opening the week at R13.01, the South African rand slipped sharply during the course of Thursday to levels of R13.35 against
the US dollar. The record stockpile of US crude oil increased by yet another 8.2 million barrels over the past week. With the week’s
inventory increase crushing analyst’s predictions, the price of Brent crude and the lighter Western Texas Intermediate (WTI) oil
slipped by at least eight percent as oversupply became more prevalent. WTI oil is currently battling to get back over the $50.00 a
barrel mark after its fall from $53.20. International Woman’s Day saw State Street Global Advisors, an investment services
company that manages $2.4 trillion, place a brass statue of a young girl staring down Wall Street’s famous brass bull in an effort
to raise awareness of gender diversity in the workplace. The South African rand currently trades at R13.26 against the US dollar.
CHART OF THE WEEK
The Global Economy by GDP
Source: How Much.net
One tends to find weird and wonderful ways of comparing global geographies with one another, be it land mass,
population, number of languages spoken, religion or the value of a country’s finished goods and services produced
within its respective borders in a specific time period, also known as Gross Domestic Product (GDP).
With a GDP of $18.03 trillion as at 01/02/2017, the United States of America clearly takes the lead in the global race
of underlying economic output on the ground when comparing countries specifically. Having said this, if one had to
take a step back and survey the bigger picture, one would see that the Asian faction (including Middle East) actually
‘takes the cake’ when it boils down to regional or continental output, contributing an aggregate of around 33.84% of
the world’s GDP. North America comes in second at 27.95% and the European region, third, with 21.37%.
As per the Worldmeters.info and enchantedlearning.com, some interesting numbers can be seen when compared at
a global scale. The population-to-GDP ratio in North America is certainly a standout figure.
Asia and Middle East – 59.6% of global population. 30.0% of the world’s land mass. 2,301 languages spoken.
Europe – 9.8% of global population. 6.7% of the world’s land mass. 286 languages spoken.
North America – 4.8% of global population. 16.3% of the world’s land mass. 1,064 languages spoken.
Africa – With a chunky 16.6% of the global population, 20.3% of the world’s land mass and 2,110 languages being
spoken, the African continent has been gifted with a platform that, with some focussed nurturing, could reap the
benefits of its melting pot of cultures and resources. Embracing only around 1.5% of the world’s GDP, will Africa be
tomorrow’s growth story or would it prefer to crumble under the pressure in which a diamond tends to thrive?
INDEX
INDEX VALUE
YTD
1 YEAR
3 YEAR
5 YEAR
CURRENT
PE
LT AVG. PE
(10YRS)
CAPE
(7YRS)
JSE ALL
SHARE
RESOURCES
(RESI 10)
FINANCIALS
(FINI 15)
INDUSTRIALS
(INDI 25)
50911
-0.2%
-1.1%
6.5%
50.1%
19.2
15.0
17.9
30276
-7.1%
2.6%
-46.0%
-41.1%
14.8
15.5
12.1
15285
0.6%
0.9%
17.3%
63.3%
12.3
13.2
15.0
65823
1.9%
-5.6%
19.1%
110.5%
29.1
16.9
29.0
Performance period: 04/03/2017 – 09/03/2017
TOP 10 GAINERS – ACROSS THE JSE
COMPANY/STOCK
1
NIVEUS
2
TOP 10 LOSERS – ACROSS THE JSE
%CHANGE
COMPANY/STOCK
%CHANGE
11.2%
1
LONMIN
-25.5%
MONTAUK
7.7%
2
KUMBA IRON ORE
-15.3%
3
DELTA PROPERTY FUND
5.5%
3
PAN AFRICAN RESOURCES
-12.9%
4
MIX TELEMATICS
5.3%
4
NORTHAM PLATINUM
-12.1%
5
ALLIED ELRCTRIC - N
4.7%
5
ROYAL BAFOKENG
-11.7%
6
LEWIS
4.7%
6
ASSORE
-10.4%
7
ASCENDIS HEALTH
4.2%
7
EXXARO RESOURCES
-8.9%
8
GRAND PARADE
2.9%
8
ANGLO AMERICAN PLATINUM
-8.7%
9
SANTAM
2.8%
9
AFRIMAT
-8.7%
10
CAPITEC BANK
2.6%
10
ANGLO AMERICAN PLC
-8.4%
QUOTE OF THE WEEK
“Alone we can do so little, together we can do so much."
- Helen Keller
DID YOU KNOW?
An adult is made up of 7,000,000,000,000,000,000,000,000,000 atoms, seven octillion to be precise. To put this
number into perspective, there are roughly 300,000,000,000 or 300 billion stars in the galaxy and the world’s
population is about 7,404,976,783 (7.4 billion). Both these numbers are rather measly compared to the composition
of an adult atomically.
(http://distractify.com/old-school/2014/07/20/amazing-facts-about-the-human-body-1197776387
WEEKLY HIGHLIGHTS
Friday, 3rd
Unemployment Rate YoY (January) | Japan
The unemployment rate in Japan was slightly down to 3.0% in January from 3.1% in the previous two months
and in line with market consensus.
Monday, 6th
Retail Sales MoM (January) | Australia
Retail sales were up 0.4% month-on-month in January following a 0.1% drop in December and also similar to
market estimates. This represented the biggest gain since October 2016 driven largely by a 1.4% rise in
household goods retailing and a 1.0% gain in other retailing.
Tuesday, 7th
GDP Growth Rate YoY (Q4) | South Africa
South Africa’s economy contracted by 0.3% in the fourth quarter from 0.4% in the third quarter. This was a
slowdown from a 1.3% recorded in 2015 due to lower production in the mining sector as well as the
manufacturing sector.
Wednesday, 8th
Industrial Production YoY (January) | Brazil
Industrial output increased 1.4% year-on-year in January for the first time in close to three years. This beat
market expectations of a 1.1% gain and provides signs that the country’s recession may be ending soon.
Thursday, 9th
Inflation Rate YoY (February) | Mexico
In the twelve months through February, Mexico’s inflation rose to 4.86%, the fastest pace in nearly seven
years following an increase in energy prices by the government.
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