Publication: Wednesday, 27 September 2017
Grant Gilburt, Portfolio Manager at Nedbank Private Wealth, discusses the recent drop in ‘FANG’ stocks (the large cap internet and technology stocks like Facebook, Amazon, Netflix and Google). This drop affected Naspers (a big constituent of our local market), which is why the South African market dipped on Tuesday. He also explains how the situation in North Korea is affecting the gold price (a ‘safe-haven’ asset); why the oil price has increased, and provides an overview of a few local stocks. Watch this commentary for the full story.
Source: The Times, Western Cape
The JSE fell sharply on Tuesday as it played catchup with world markets following the local public holiday. The All Share index was off 1.49% to 55 008 in afternoon trade, heading for its worst one-day decline since April.
Industrial stocks led the declines, which analysts partly attributed to the continuing conflict between North Korea and the US.
Pyongyangis in Washington's cross-hairs after conducting several ballistic missiles and a nuclear test earlier in September.
The crisis is threatening to boil over into a military confrontation, which would likely have consequences on financial markets.
Nedbank Private Wealth stockbroking portfolio manager Grant Gilburt said the markets would keep an eye on US Federal Reserve clues to interest rates. "The Fed surprised markets last week after striking a hawkish tone with their expectations for another hike by the end of the year," Gilburt said.
World stocks and the euro fell for a fourth day as investors who had piled into both all year took a step back as the list of global uncertainties began to lengthen again.
They included a lurch to the right in German politics, rising oil prices and falling tech stocks. - BusinessLIVE, Reuters
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