Tony Bell, Vunani Fund Managers, mad the following comment on Ryk van Niekert's Moneyweb interview:
""Naspers, of course, skews our indices quite a bit, Naspers up and everyone is happy, Naspers down and the market is down, and I think that’s the pattern we are starting to see which is very much a mimicking of what’s happening in China. If you have a look at our market in relation to the weakness in the Chinese renminbi, those factors have become more correlated. So we, to a certain extent, have lost a little bit of that historic correlation we had with the S&P because the S&P has itself become so differentiated between the top performers and the rest of the market, and we are now more correlated with emerging markets and, ironically, the path of the renminbi versus the dollar."
so I thought I would have a look at the JSE and Chinese markets both in USD and guess what ..... he's right!
""Naspers, of course, skews our indices quite a bit, Naspers up and everyone is happy, Naspers down and the market is down, and I think that’s the pattern we are starting to see which is very much a mimicking of what’s happening in China. If you have a look at our market in relation to the weakness in the Chinese renminbi, those factors have become more correlated. So we, to a certain extent, have lost a little bit of that historic correlation we had with the S&P because the S&P has itself become so differentiated between the top performers and the rest of the market, and we are now more correlated with emerging markets and, ironically, the path of the renminbi versus the dollar."
so I thought I would have a look at the JSE and Chinese markets both in USD and guess what ..... he's right!