Investment Report, 30 April 2009
April might have felt shortened by the slew of public holidays, but it was an action packed month none the less. The 5-yearly national elections drew a record amount of voters and came and went without any major surprises, bar the ANC falling just short of a two thirds majority that would have enabled them to change the constitution.
The G-20 summit that was held at the start of the month benefitted emerging and developing countries and this helped financial markets to set forth the advance that started in March.
The IMFs growth revisions included a downward revision to South African growth. They now expect our economy to contract by 0.3% during 2009. The FTSE/JSE All Share Index ended the month on a firm footing, closing 1.6% higher. This return seems dismal in comparison to other emerging markets, but it was 13.7% higher in dollar terms on the back of one of the strongest monthly performances by the rand.
The rand appreciated by 11.9% against the green back to close at R8.44/dollar making it the best performing currency in the world for the year to date. The rise in the local bourse was led by the financial sector which recorded a return of 5.2% and it was followed by industrial shares ending 4.8% higher.
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