{"id":388431,"date":"2020-04-08T16:45:47","date_gmt":"2020-04-08T14:45:47","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=388431"},"modified":"2020-04-08T16:45:47","modified_gmt":"2020-04-08T14:45:47","slug":"south-african-stocks-rebound-but-investors-should-tread-carefully","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/388431\/south-african-stocks-rebound-but-investors-should-tread-carefully\/","title":{"rendered":"South African stocks rebound – but investors should tread carefully"},"content":{"rendered":"

South Africa\u2019s benchmark index has staged a spectacular snap-back from its March nadir as global signs the coronavirus pandemic may be being brought under control encourage investors to return to riskier assets.<\/p>\n

But the gains have been accompanied by record volatility, underscoring the need for caution. A measure of the index\u2019s 30-day volatility has set a fresh record high of 70.54, with stock prices swinging by their wildest margins ever.<\/p>\n

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Since spiralling into a bear market last month, the FTSE\/JSE Africa All Share Index has surged 24% from its March 19th low, a technical sign that the benchmark has already entered a bull market.<\/p>\n

\u201cMany are ready to buy into the optimistic narrative and discount the fact that we still don\u2019t have a full understanding of how much the virus has spread or how it behaves,\u201d said Lulama Qongqo, an analyst at Mergence Investment Managers in Cape Town.<\/p>\n

\u201cI trust in the scientists when they say that it will take 12 to 18 months for us to have a vaccine for distribution. Until then, people, companies, and governments will likely need to tread carefully.\u201d<\/p>\n

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Biggest gainers in the rebound include:<\/p>\n