2018: The year of SA Inc and small caps

2018: The year of SA Inc and small caps

The market and currency has responded positively to the appointment of Cyril as President of the ANC.  

 

We’ve seen the Rand on the longest weekly wining streak since 2002, as foreign investors that were sitting on the sidelines start deploying capital in to SA stocks. As mentioned late last year, the stocks on their shopping list are SA focused companies with earnings mostly generated locally.  

 

Small and mid-cap companies will also benefit as the local environment and investor sentiment improves. 

 

The top three performers of 2017 were Kumba, Trustco and Astral, while Steinhoff was the biggest loser down 93%. 

 

Steinhoff remains under pressure and will likely have to re-state financial results dating back to 2015. Investors should remain cautious when investing in its shares. 

 

The week ahead: 

  • Local economic data releases: Manufacturing Production and Sales (11/01) 
  • LDT 09/01: AFH, BAW, DTC, OMN, RFG, SAP, TBS and Various Satrix ETFs 

 

Other Economic data releases of interest… 

  • Wednesday: Manufacturing Production (UK), Crude Oil Inventories (USA) 
  • Thursday: Retail Sales (AUS), PPI (USA) 
  • Friday: CPI, Retail Sales (USA) 

 No Buys or Sells 

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