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RADHA00027
Positive View Predicted for South African Stocks in 2019
posted 1 month ago by radha00027
Positive View Predicted for South African Stocks in 2019
Analysts expect 2019 to usher in a period of prosperity for the JSE after investors suffered negative returns this year, with the all share index has plunged by more than 10 %.
In 2017 the JSE all share index had delivered a healthy 20% return on investments. The newest Schroders Global Investor Study found that South African (SA) investors expect their portfolios to return nearly 13 % annually in the next 5 years. This would be 8.4 % higher than their actual returns over the past five years.
Despite actual Morgan Stanley Capital International (MSCI) index 5-year average annual returns over the period 2013 to 2018 (based in rands) being relatively low at 4.4 %, South African investors expect yearly returns to rise by 8.4 % to 12.8 % over the next 5 years.
According to the study, the average South African investor holds 31 % in equities, 17 % in bonds, 21 % in cash, 15 % in property funds and 15 % in alternative investments. JSE giants such as MTN, Aspen and Tiger Brands declined by more than 35 % during the year, while a few other well-regarded names fell more than 30 %.
South Africa’s stock market was set to close the year below the 53000-point mark after plummeting from January’s record high of 61684 points as a Ramaphoria wave swept through the markets.
In a global context, SA bonds look mostly attractive, and a small change in sentiment could increase returns. Consequently, now is not the time for SA investors to go offshore and they have actually been increasing their portfolio weights in South Africa. The markets will be fixated on the run-up to and the outcome of the 2019 election. They would only revise growth estimates at each incremental change. Essentially, given the deep declines in some of the mainstay stocks together with a slightly better mood in the country than previous years, they would support positioning for a regaining in returns when considering the risk asset classes.
Source : https://ftsejsetop40futures.org/

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