Best quarter in more than 23 years

2010-10-16 00:00

AFTER suffering the worst quarter in eight years, mature market equities had their best quarter in more than 23 years.

This can be ascribed to the debt crisis in the European Union appearing less troublesome than was initially feared and concerns of an imminent implosion of China’s real estate market being allayed, says Dr Prieur du Plessis, Plexus Group chairperson and author of the Investment Postcards blog.

“Global investors cheered South Africa’s success in hosting the World Cup as the FTSE/JSE All Share Index massively outgained the other markets by ending the quarter 24,9% higher in dollars, dividends and income reinvested,” says Du Plessis.

Financials and industrials were the darlings, returning 30,6% and 26,9%, respectively.

Du Plessis points out that much of the returns in dollars can be attributed to the rand strengthening by 10,2% against the dollar. “It is clear that the impact of the World Cup on the South African financial markets was vast,” he says.

While local investors on the South African bourse had slightly less to cheer about, the return on the FTSE/JSE All Share Index of 13,3% in rand terms more than wiped out the previous quarter’s loss of -8,2%.

The collective investment schemes subcategories that performed the best during the last quarter were the domestic-equity-industrial and domestic-equity-large cap sectors with 16,0% and 12,9%, respectively.

The worst subcategory for this period was the foreign-fixed interest -varied specialist category with minus 4,3%.

The 12-month charts are topped by the domestic-real estate-general and domestic-equity - financial category with 24,8% and 23,2%, respectively.

Over three years, the domestic -fixed interest-bond category was first with 9,9% per annum,

The domestic-real estate-general category performed the best over the past five years with 16,9% p.a.

— Weekend Witness Reporter.

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