The RMB/BER Business confidence index for 2018 Q1 rose sharply to 45, the highest level since 2015. A level above 50 is considered positive, but it’s a move in the right direction. 


As mention last week, improvements in investor, business and consumer confidence is the tail winds behind improving economic growth. 


There are a few obstacles that could come in the way of increasing growth like the land reform policy, funding “free” tertiary education and the Mining charter. 


If the SA government play their cards right, we could be headed for a “Brazilian styled recovery”. 


Brazil’s stock market has more than doubled since the process to impeach their president Dilma Rousseff started in late 2015. Inflation has come under control and the Brazilian Real is also significantly stronger. 


The remainder of the year will be volatile, but investors that buy the dips and don’t get frightened out of the market will be rewarded. 


The week ahead: 

Last week’s movers and shakers… 


Other Economic data releases of interest… 


Two to Buy 


Sibanye-Stillwater: Lonmin take over making progress 


The trading pattern on Sibanye has been providing good opportunities for short-term traders. The price has retraced again on the offer for Lonmin and buyers have been defending the R11 level. A bounce is due and could materialise irrespective of the outcome of their offer 


Buy SGL below R11.50 for a move to R13.50 in the short term 


Shoprite: Benefiting from interest rate cuts 


SHP has pulled back to support around the R250 and with better consumer sentiment and prospects for interest rate cuts we expect another run to new highs.  


Buy SHP below R257.50 for a move back to above R285.  


None to Sell 


Long Term Ideas