Market reality vs Street reality

Mr at the right Price

Mr Price is raising capital through an age old method. Are we going to see a scramble to capture Edgars' market share if they don't survive after lockdown? Investec are navigating murky waters after Brexit and Covid-19 have restrained business activity. Are food retailers Covid-proof? Chinese stocks are feeling the pinch of China's security measures. And American unemployment claims have hit historical figures.

Survive, not Thrive

Though JSE share value is down, this is no time to panic, Exchanges recover from crashes rather quickly. With the UK's GDP contracting 2% in the first quarter and 33 million jobs lost in America, how will this affect consumer spending as lockdown eases? Group Five will be delisting after nearly five decades on the JSE.

Market reality vs Street reality

The economic reality on the street vs the markets is worlds apart. Is it good when the yield is up? What exactly are foreign reserves? Is Covid-19 enforced redundancy just an excuse for businesses who were on the brink anyway? And the US job loss numbers have gone beyond the number of people who are employed in South Africa.

Edcon & Comair in trouble while Spotify flies

Another positive week for the JSE, as investors turn positive on the news that quite a few countries are lifting lockdown restrictions. S&P ratings agency downgraded SA further into junk status, but the Rand is still holding below 19/US$. Edcon has filed for voluntary business rescue, as Comair find themselves in a “very difficult“ financial situation. The US Fed kept rates on hold, while another 3.8m Americans registered for unemployment. And Spotify claims that podcast listening has increased, as every day for users now looks like the weekend.

Volatile is the new norm

Why doesn't the Stock Market close when all other businesses have to? Who legislates the JSE? Are traders adjusting to volatility as the new norm on the market? While the Rand hit an all-time low, Anthea details what micro and macro factors could lead to inflation if we are not careful.