You know spring has finally arrived when you open the door and feel a gentle warmth in the air instead of the biting cold of winter. The same feeling is in the air when we open the door, so to speak, to look at recent developments in the South African financial markets – although the same can unfortunately not be said of the political and social environments.
We have seen some big leaps in the share prices of those companies with less disappointing results than expected and even Moody’s came out with a statement last week that indicated they might not downgrade us to junk as had been expected.
The rand has strengthened by close to 7% over the last few days, mainly due to US$ weakness and we saw the largest South African company, Naspers, listing its internet assets in Amsterdam. September is, on average, the worst month for JSE returns and we can look forward to a strong October, November and December if history repeats itself (see chart).
So, let’s hope the recovery in the investments markets will continue and we will see sanity return to our politics – and humanity.