Daily Market Blog: Shang High and Low
"In China I guess what we have to remember is that participation in the equities market is something that is relatively new, the Chinese stock exchange as we pointed out the other day only restarted in 1991. Before that I am guessing that it was cash, or there was very little savings as the economy has grown 25 fold since back then. By contrast the market has woefully underperformed the broader stock market, over a decade and a half the Chinese stock market is up a little over 200 percent."
To market to market to buy a fat pig. Locally stocks sank ever so slightly, led lower by industrials, resource stocks bounced as the Rand weakened. More specifically, gold shares bounced hard off very depressed levels, some individual stocks up as much as 7 or 8 percent. Wow, if nothing the ride is wild, although it seems more like a B24 riddled with holes rather than a cruise where the pilots are in control.
Construction group Group 5 confirmed how tough it is out there with a poorly received trading statement, sadly for shareholders the stock sank nearly 13 percent. The stock now trades at a 52 week low, as far as I can tell, the government employees pension fund is the largest shareholder here with a little over 15 percent of the shares in issue. The one thing that I will give the company is that they have consistently paid a dividend through the good and bad times, an unbroken streak (on both the final and interim) back to the 1970's. As far as I can tell. To put that into perspective, Murray & Roberts have paid only one dividend since the World Cup was held here in 2010, Wilson Bayly has also managed to pay through the cycle. Ditto Raubex, perhaps it is just a Murrays "problem".