In this landmark 600th episode of JSE Direct, Simon Brown reflects on the podcast's journey from its beginnings as a radio show in 2008 to becoming a leading podcast for market insights. The episode covers a range of topics, from South Africa's local CPI and a strengthening Rand to the surprising twists in the gold market and a mixed bag of corporate earnings.
Local Inflation Data:
South Africa's CPI has come in better than expected at 4.6%, fueling speculation on whether the next rate cut by the MPC might be more aggressive than anticipated.
South Africa CPI | July 2024
Rand Strengthens:
The Rand has shown significant strength, dropping below 18 to the dollar, with Simon analyzing the contributing factors, including foreign investment in bonds and a weakening US dollar.
Bull Market Sentiment:
Simon reaffirms the current bull market, highlighting the JSE's all-time highs and advising listeners to stay invested while cautioning against the risks of sitting on the sidelines.
Top40 20 August 2024 | Weekly chart
Gold Market Rally:
Gold prices have surged above $2,500, driven by central banks' increased purchases and concerns about the US dollar's stability. Simon discusses the potential for further gains in the gold market.
Corporate Earnings Recap:
- Coronation Fund Managers: Special dividend announced but falls short of expectations.
- CMH*: Despite low liquidity, the stock continues to climb, reflecting the breadth of the bull market.
- Sasol: Disappointing results with no dividend payout, a situation Simon had previously predicted.
- Spur Corporation: Strong earnings, signaling improving economic conditions.
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