Daily Market Blog: Do the commodity bounce

24-NOV-14

"It was with great relief that the collective rallied as much as 6.1 percent, some heavyweights such as Kumba Iron Ore added 7.9 percent on the day (the last 12 months the stock is still down nearly 23 percent), whilst the heavyweight diversified companies, such as Glencore (up 3.68 percent), Anglo American (up 6.57 percent) and BHP Billiton (up 6.19 percent) helped the market higher. Industrials and financials unperformed the broader market, still managing a more than two and half percent gain.

So what now? Is this the recovery in commodities prices that many are looking for? Perhaps in the short term. When I read headlines that US imports from OPEC producing companies are at a thirty year low as a result of the shale revolution in North America, I am pleased for Joe consumer"






To market, to market to buy a fat pig. Wow. I am not too sure that I have seen a day as big as that, in the direction of the bulls (sell offs are always worse than rallies), in the end the overall market gained 1583 points to close up near 51 thousand points, a gain of 3.2 percent on the day. What happened, global peace? No. Out of the blue and unexpected, just around lunchtime here Friday, the People's Bank of China (PBOC) cut interest rates, the first such move in 2 years. This obviously indicates a willingness to encourage business to borrow more against the backdrop of a rate of growth that is slowing in China. There is lots of room to manoeuvre for a bank of its size that very little if ever is talked about. People speak about the ECB and Fed until the subject has been beaten to death with a long, long stick, it is rare for the PBOC to be brought up, unless of course there is action on this sort of scale.

Read More...

What we do at Vestact

Vestact manages money for private clients, in Rands in Johannesburg and in US Dollars in New York. We offer individualised investment accounts, and a high level of personalised service. Through low fees and effective stock-picking, we have delivered industry-beating investment performance. For a longer description of how we go about the business of asset management at Vestact, click here.

To open an account, call us on 011 022 5440, or come in and visit us at our offices at 24 Crescent Drive, Melrose Arch, Johannesburg.

To sign up for our free e-mail market report service, and track the performance of our recommended stocks with a free watchlist, click here.

Stocks which we currently recommend

Amazon.com is the world's leading online retailer.

Apple is global leader in tablet and smartphone technology.

Aspen is a rising global star in generic pharmaceuticals.

BHP Billiton is the world's largest industrial commodity mining company.

Bidvest is a diversified services company, which may re-organise its portfolio.

Cerner provides IT solutions in the healthcare industry.

City Lodge is a growing mid-priced hotel group in urban areas of SA.

Discovery is a healthcare services administrator and life insurer.

Famous Brands is SA's largest quick-service restaurant group.

General Electric is a diversified investment holding company.

Google is the world's biggest search engine and online advertising platform.

Johnson & Johnson is the largest consumer healthcare and pharma company.

L'Oreal is a world leader in the manufacturing and sale of beauty products.

Luxottica is the world's largest branded sunglass maker and retailer.

MTN Group is an emerging markets mobile telecoms giant.

Massmart is a big-box discount retailer in Africa, now 51% owned by Wal-Mart.

Mediclinic owns hospitals in SA, the UAE and Switzerland.

Naspers is an in emerging markets company focussed on digital TV & Internet.

Nike is a global designer and retailer of sporting equipment.

Omnia is a fertiliser and explosives producer.

Richemont is a luxury brands company expanding in Asia.

Sasol is a global player in chemicals and fuels technology.

Starbucks is a roaster, marketer and retailer of coffee.

Stryker makes hip and knee joint replacements and hospital beds.

Tiger Brands is a basic and branded food producer, expanding through Africa.

Visa is a global payments technology company.

Woolworths is SA's leading organic food retailer & clothing business.

Archived Reports

CNBC Africa Hot Stoxx Videos

Newsletter Sign Up

Sign up for our free daily market newsletter.

Paul Theron's Tweets

Sasha Naryshkine's Tweets

Byron Lotter's Tweets

Michael Treherne's Tweets