Expect new highs
Our local market traded up at new alltime highs as a result of fears of a nuclear war between the US and North Korea. Another contributing factor was the Chinese government investigations into Tencent (in which Naspers* holds a significant stake) that sent markets down. This global and local markets sell-off may take us down as much as 10% to 15%. Truthfully, on that score I have no idea and it’s just a prediction. But that is the bottom of the range we’ve been stuck in for the last three plus years. My overall bullish view on the local market remains – the next significant move is likely to be higher. I expect new highs rather than breaking down out of the three-year trading range.