The JSE has remained largely unaffected by the ups and downs of the South African economy, particularly when it comes to the Top 40 listed companies.
Dwaine van Vuuren, the founder of PowerStocks, said that despite a 45% depreciation in the rand to dollar rate since January 2011 — 13% in 2013 so far — and the shocking 0.9% annualised gross domestic product figures released this week by Stats SA, which drove the rand to four-year lows, the JSE was up 44% since August 2011 and 10% since mid-April.
The general view is that JSE dual-listed companies will continue to benefit from a weakened rand. There is concern, however, that the JSE is dependent on international trends.
The announcement from the United States on Wednesday that it might reduce stimulus measures in line with that country's recovery is a case in point. The JSE reacted immediately and negatively to the news.