The JSE remains in its consolidation phase but the current Rand weakness has created opportunities to buy some blue chips on the cheap. 

 

The Rand has followed emerging market currencies lower over the past week on the back of concerns in Turkey. The Turkish Lira has lost more than half its value as they deal with their own “Nenegate”. 

 

The main reason for the Rand’s significant weakness and volatility is it’s more liquid than other emerging market currencies. When there is a blow out in other emerging markets, money managers head the Rand to hedge their risk and speculators position themselves to profit. 

 

The Rand has already recovered from it’s weakest and should come back to previous levels.  

 

Investors looking for offshore exposure with downside protection should contact Prodigy as we have a multitude of new products that give limited to 100% downside protection.  

 

The week ahead: 

Last week’s movers and shakers… 

Best Performers: DRD 12.7%; FFB 9.3%; S32 and RES 8.9%; BID 7.8%; GLN 7.2%  

Worst Performers: SFN10.5%; MTN –7.7%; SHF -6.2; DTC –5.4%; BAT -5.2%;  

 

Other Economic data releases of interest… 

 

One to Buy – Buy FSR on the dip 

 

Banks, generally, move in tandem with the currency, a weaker Rand sees them fall and a stronger Rand acts as a tail wind pushing them higher. 

 

FSR as pulled back to above its 200-day moving average at R62.27. The will provide strong support for the price. And further Rand strength will see it back above R65.00. 

 

Buy FSR below R63.25 for a move above R65 in the short term and R67.75 in the medium term. 

 

Short Term Ideas 

 

Long Term Ideas 

Retirement Solutions  

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Prodigy is a leading provider of new generation investment solutions for pre and post retirement. Typically, we can reduce your fees by 60% or more!! 

To ensure you have the best solution contact Gavin McCarter to set up a free review. Tel: 011 065 9316, Email:  gavin@prodigyam.co.za