Week 12

Property Industry:

• The average house price submitted for the month of May 2021 was 7% higher than the previous year’s average
• May 2021 submissions was 6% higher than the previous five months submission average Bank conversion ratios achieved the highest % in 12 months
• Average house price Granted for the month of May 2021 was 18% higher than previous year and 9.06% above 2020 average

Local & International Markets:

• The rand was marginally stronger on Wednesday at R13.57/$ after closing weaker the previous day (R13.58/$*).
• EM currencies were mixed this week; the RUB (+0.7%), BRL (+0.2%) and MXN (+0.2%) were amongst the biggest gainers; the HUF (-0.8%), ZAR (-0.5%) and CLP (-0.3%) were amongst the biggest losers.
• Asian equity markets are mixed; the Nikkei and Hang Seng are down while the Shanghai Composite is up.
• The World Bank has upwardly revised its global growth forecast this year to 5.6% from 4.1% in January. China and the UK are leading the way at 8.5% and 6.8% respectively.
• Despite rebounds, global output is expected to be 2% below pre-pandemic projections by the end of this year. They noted that while there are welcome signs of a global recovery, the pandemic continues to inflict poverty and inequality on people in developing countries around the world.
• Developing countries are expected to continue struggling whilst battling to acquire vaccines. Growth in low-income countries is expected to be the 2nd slowest of the past 20 years, at 2.9%, from 3.4% in January.
• The World Bank also upwardly revised SA GDP growth to rebound by 3.5% in 2021, from 3.3% in January.
• The World Bank noted that “fiscal pressures and weak public investment growth dim South Africa’s near-term growth prospects, and structural impediments to potential growth remain”.
• Brent crude oil is up this week, and up by 40.1% year-to-date. Brent crude oil is currently at $72.58/bbl; ($72.22/bbl*).
• The gold price is up this week, and down by 0.2% year-to-date. Gold is at $1894/oz ($1892/oz*).
• SA CDS 184bps*, higher than Brazil 162bps* and lower than Turkey 394bps*.
• Yields: US 10yr at 1.52%*, German bund at -0.224%* and SA 10-year generic at 9.07%*, SA’s R186 at 7.18%*.

Covid Update:

• Covid-19 global update: cases have surpassed 174.74 million, while the death toll has surpassed 3.76 million; recoveries are at 158.16 million.
• The US has 34.24 million cases, accounting for 20% of global cases; the US death toll is 613,052. India has 29.08 million cases and 353,557 deaths; Brazil has 17.03 million cases and 477,307 deaths.
• US infectious disease specialist Anthony Fauci has issued a warning about the Delta variant that was first identified in India. The WHO has commented that the Delta strain is markedly easier to transmit and more virulent than previous mutations.
• The Pfizer vaccine will be tested in children under 12 in a late-stage trial. The UK and US have joined forces to rally the G7 to make vaccines available to low-income nations.
• Africa’s Covid-19 cases are at 4.991 million; fatalities are at 133,382. Morocco has 522,003 reported cases, Nigeria 166,918, Ghana 94,228, Kenya 173,072.
• SA has the 19th highest caseload, at 1.704 million; 4,209 new cases were reported on Wednesday.
• Covid-19 deaths rose by 120 on Tuesday, to 57,183; 1.587 million people (or 93%) have recovered from the virus. 11.932 million tests have been conducted since 5 March 2020; 32,225 tests were conducted on Tuesday.
• 43 million vaccines have been administered to date.