Bull dominates the JSE

The stock exchange may be strong, but the economy is experiencing

By Lucas de Lange

with no fewer than 87 of the 100 biggest shares on the JSE, measured by market cap, sitting above their 200-day exponential moving averages (EMAs), there is little doubt that the bull is dominating the stock exchange. It’s the highest percentage in years, and this strong buying pressure is also reflected in the record levels of the large indices. However, market experts are concerned that these strong JSE figures are being reached in an economy that is in the middle of depression-like conditions. The state of the share market bears no relationship to what is actually happening in the economy. The one sector where the fundamental factors and sentiment are in harmony, which is necessary for a “normal” bull market, is commodities, where record profits are being made due to high prices.…

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Finweek - English (Digital) - 1 Issue, 3/4/2021

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