The Money Shot

Mr Price is raising capital through an age old method. Are we going to see a scramble to capture Edgars' market share if they don't survive after lockdown? Investec are navigating murky waters after Brexit and Covid-19 have restrained business activity. Are food retailers Covid-proof? Chinese stocks are feeling the pinch of China's security measures. And American unemployment claims have hit historical figures.

Though JSE share value is down, this is no time to panic, Exchanges recover from crashes rather quickly. With the UK's GDP contracting 2% in the first quarter and 33 million jobs lost in America, how will this affect consumer spending as lockdown eases? Group Five will be delisting after nearly five decades on the JSE.

The economic reality on the street vs the markets is worlds apart. Is it good when the yield is up? What exactly are foreign reserves? Is Covid-19 enforced redundancy just an excuse for businesses who were on the brink anyway? And the US job loss numbers have gone beyond the number of people who are employed in South Africa.

Another positive week for the JSE, as investors turn positive on the news that quite a few countries are lifting lockdown restrictions. S&P ratings agency downgraded SA further into junk status, but the Rand is still holding below 19/US$. Edcon has filed for voluntary business rescue, as Comair find themselves in a “very difficult“ financial situation. The US Fed kept rates on hold, while another 3.8m Americans registered for unemployment. And Spotify claims that podcast listening has increased, as every day for users now looks like the weekend.

Why doesn't the Stock Market close when all other businesses have to? Who legislates the JSE? Are traders adjusting to volatility as the new norm on the market? While the Rand hit an all-time low, Anthea details what micro and macro factors could lead to inflation if we are not careful.

How is it possible that trading volumes are up January to March 2020? Are the IMF being a little dramatic with their predictions on the economic global outlook post Covid-19? JP Morgan's losses are astronomical in the latest reporting. Gold is now a bar, yes it's that kind of bar but also, it now costs one bar for a bar. The IEA predicts a sharp drop in barrel per day production in the oil sector - how does this affect the markets and oil prices? Reports claim South Africa might hit an undesirable world first when it comes to the employment sector.

Banks are expecting a $5 trillion loss from all the coronavirus related economic inactivity. The All Share Index is up 4%, which is a disconnect from the real world economy. Sasol's share price is up 73%... what is going on there? Volatility is at an all time high on the markets, even beyond 2008 numbers. Is lockdown a good time to be online trading? Crowd1 - be careful, do research before signing up. China reopening its economy has been interesting. And the World Bank has some scary predictions for Sub-Saharan economies.

South African Bonds are still in high demand, which is good news in what has been a tough economic month for the country. Banks have taken a 40% knock and projections are not much better, as the ripple effect of Covid-19 is now truly starting to shake all sectors of the economy to its core. Gold and tech companies seem to have shown a bullish nature, even in these challenging times. Could this be the time to renegotiate your lease with your landlord if you are a retailer occupying space in malls? The inevitable cash crunch - which was expected - is now starting to rear its ugly head. Russia and Saudi Arabia continue their stand-off over oil... not even a pandemic has brought a moratorium between these juggernaughts who are both rich in ‘black gold’.

Edcon has been teetering for a while, but the Covid-19 lockdown may very well be the coup de grace which deems the company defunct. Mr Price has delayed the release of its reports during the lockdown, and there are murmurs that bonuses and raises for their executive staff may be frozen until further notice. Moody's has finally dropped the hammer and South Africa is now officially at junk status. How will this affect South Africa, from the Reserve Bank to the citizen who is paying a bond and school fees? Will Covid-19 be harder to recover from than the market crash of 2008?

The credo of those who trade on stock markets right now is “sell, sell, sell!” The trend as we stand is to move from equity to cash. The All-Share index is 9% down this week. South Africa - of all the emerging markets on planet Earth - is doing well, let’s see if that holds. Banks are trading at 2008 levels, yikes! Capitec came out with a strong message for shareholders. On the surface, some property shares are showing a 40% yield, but the fine print needs a sharp eye. There’s a difference between panic and capitulating - Anthea explains. Big up to the blue bank of South Africa... students and SMEs will be grateful for the next 90 days.