Brexit – What Has Happened In SA Markets This Week?

We all woke-up a week ago and when we looked at our phones, got a big shock.  On Monday I wrote about the initial impact of Brexit on SA and this post will be about what has actually happened in the first week.  Of course we have seen huge implications for UK politics and other EU member countries but my focus however is on the impact on SA.

The Rand, gold and platinum prices, JSE shares and general vibe around the place, will all be included.  All of these charts, taken from my online share trading account, show what has happened over the past 3 months, for greater perspective.  The #Brexit impact can be seen with some large movement’s right at the end of the line.

The Rand

Rand

The impact of #Brexit can be seen with the large weakening initially against the USD.  Since then the Rand has strengthened but is not back to where it was before the referendum result was announced.

 

 

 

The Gold and Platinum Price

Gold

 

 

 

Both of these are up for the 3 month period as well as #Brexit week.  SA mining companies are getting some good news!

 

 

 

 

 

The JSE

Alsi

 

After a big dip, the JSE has started to climb nicely.  A big mover that caught my eye was Kumba up by 22% whilst Capital and Counties Property is down 9%.

 

 

General vibe around the place

Times of great volatility can be viewed as battles between fear and greed.  When fear takes hold, confidence leaks and sales occur at lower and lower prices.  The effect is the opposite when greed starts to take hold.  The classic cartoon at the top of this page illustrates this cycle perfectly.

It’s too early to know how all of this will play out but let’s all be students during this time.  There is much to learn about the battle between fear and greed, especially for aspiring CA(SA)s.

Paul Maughan

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