Anglican Church of Southern African

Financial overview

 Financial Over view (See download for full report)


Local asset prices plunged amidst concerns over global economic stagnation and a potential Greek default. The FTSE/JSE All Share Index ended, during a very volatile month, 3.6% lower. It was a broad based sell-off with resources 4.7% lower and financial and industrial shares down 3.3% and 3.4% respectively. The rand posted its largest daily loss since October 2008 and depreciated by 15.7% against the dollar during the month. It closed at R8.09 against the dollar.

The rand's sharp depreciation right before the Reserve Bank's Monetary Policy Committee meeting might have swayed some members from calling for an interest rate cut. The Reserve Bank left interest rates unchanged, but revised their economic growth forecasts lower. This is in conjunction with the deterioration in the growth of the leading economic indicator. The manufacturing sector is already struggling, with a 6% year on year contraction experienced in July. The manufacturing sector has continued to shed jobs, according to the latest employment data, while the public sector has been the employer of last resort. In contrast, consumer demand has been resilient according to growth in retail sales.

Even though inflation for August, at 5.3%, surprised to the downside, local bonds suffered severe withdrawals from international investors. Foreign investors withdrew more than R18bn from the bond market. The All Bond Index lost 2.1% - the same as the decline in the listed property sector during the month.

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