Cannon Asset Managers is a licensed asset management business based in South Africa that manages domestic assets as well as global investment portfolios. Since our formation we have successfully applied the philosophy and principles of value investing, an investment management approach that consistently has demonstrated a clear advantage over other philosophies.  Consequently, over the years Cannon Asset Managers has developed a reputation for successfully delivering portfolio results to our clients who include companies, pension funds, insurance companies, trusts, high net worth individuals and retail investors.

The Johannesburg Stock Exchange bounced on Thursday as the US Federal Reserve downgraded its economic and inflation forecasts for this year, setting a gradual tone to raise interest rates. The rand took much relief from this as it strengthened to R11.94/$ from R12.32/$.

Eskom once again erased the benefit (of the stronger currency) as it was downgraded by ratings agency Standard and Poor’s. The ratings agency gave the power utility a junk credit rating due to the leadership void caused by the suspension of four executives.

Consumer inflation in SA slowed to 3.9% last month, a four year low, strengthening the case against rate hikes as the Reserve Bank meet next week.

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