Market Talk Update – March 22, 2018

    JN Fund Managers
    JN Fund Managers
    Peta-Gay Miller - Asst. Vice President, Sales & Client Services

    Indicator

    Period Data Year/Year YTD Chg Mth/Mth
    Current

    Similar Period Last Year

    Inflation Rate Feb-18 -0.10% 0.20% *4.4%
    Three Month T-Bill Avg Yield Mar-18 2.98% 6.13% -315bps -120bps -38bps
    Six Month T-Bill Avg Yield Mar-18 3.17% 6.32% -315 bps -146ps -42bps
    Interest Rate on BOJ Overnight Rate (policy rate) Feb-18 2.75% ** 3.0%
    Weighted Average Loan Rate Jan-18 14.46% 16.12% -166bps -13bps -13bps
    Commercial Bank Loans (J$M) Jan-18 $615,825.73 $499,055.03 23.40% 0.03% 0.03%
    Current Account Deficit (US$M) July – Sept 2017 -$305.56 -$186.30
    NIR (US$M) Feb-18 $3,179.50 $2,615.26 21.57% -0.90% -0.74%
    Remittance (Inflows US$M) Aug-17 $191.60 $194.10 -1.29% -13.81% -1.74%
    FX Rate J$: US$1 16-Mar-18 $127.99 $128.47 -0.38% 2.39% 0.76%
    Junior Market Index 16-Mar-18 2,881.87 3,031.00 -4.92% 5.48% -1.69%
    Junior Market Capitalisation (J$B) 16-Mar-18 $121.87 $121.45 0.35% 6.17% -1.08%
    JSE Main Market Index 16-Mar-18 290,432.66 225,903.11 28.57% 0.71% 0.83%
    JSE Volume Traded YTD (B units) 28-Feb-18 0.25 0.34 -26.47%
    JSE Main Market Capitalisation (J$B) 16-Mar-18 $1,046.50 $812.50 28.80% -0.21% 0.83%

    ** Previous BOJ Overnight Interest Rate (policy rate) as at January 18, 2018  

    At the conclusion of its two-day meeting, the United States (US) Federal Reserve raised its benchmark interest rates by 25 basis points (25%), to range between 1.50% and 1.75%; in line with market expectations. This rate hike is the first since the start of 2018 and will mean higher U.S. borrowing costs (i.e. interest rates) for consumers and businesses. The US Fed did, however, indicate that it will be maintaining gradual policy tightening with three (3) interest rate hikes in total for 2018. The Fed’s gradual pace is aimed at providing room for them to focus on inflation targeting and observe whether the new fiscal stimulus program under the Trump Administration will strengthen inflationary pressures in the economy in the near-term.

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