As we near the ANC conference next week it’s important to note that we could see huge volatility in the ZAR. This could have a meaningful impact on the equities market. My suggestion would be to keep a balanced portfolio and to keep in mind that the market will act emotionally but life will go on. This will create some opportunities in the market.

A balanced portfolio is important and with balance I mean some rand hedged shares and some rand sensitive shares. Whichever way it goes with a balanced portfolio you should be covered for the ZAR strength or weakness scenarios. Some shares to add to a portfolio if you believe the ZAR will weaken should be British American Tobacco, Naspers, Mondi, Richmondt CFR and also mining shares like Anglo American or BHP Billiton. If you are of the opinion the ZAR with strengthen due to the ANC conference you should consider shares like Standard Bank,  Shoprite, Woolies, Remgro to name a few.

I will share with you the chart of BTI and SHP and than it would be good to go back after the conference to see how these shares reacted.

SHP

This looks a bit oversold and could be a buying opportunity

BTI

This share seems a bit overbought but could benefit from a weaker ZAR.

Next time

We look at opportunities in the market for 2018.

And On behalf of Afrifocus Wealth and Share Direct I wish you and your families very blessed Christmas and a happy and prosperous new year.

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