South Africa 40 cash index retreats amid budget concerns and tariff tensions
The South Africa 40 cash index faces short-term pressure as local political concerns collide with international trade tensions, prompting a reassessment of trading positions while maintaining a positive long-term outlook.
South Africa 40 Cash Index
The South Africa 40 Cash Index has come crashing down as the local budget and in turn Government of National Unity (GNU) stability concerns meet the reciprocal tariff announcements from US president Donald Trump.
In turn our long trade assumptions have failed with the index trading below the guided stop level in from our previous note.
The long term trend is still considered up despite the short term price correction underway. For now we wait to see how far the current correction takes us before looking for new trade considerations.
South Africa 40 Cash Index (previous)
The South Africa 40 Cash Index has muddled along since our last note although has now started to renew gains. Our guidance remains relatively unchanged in that the long term trend is up, and after a brief pullback from all-time high territory the index does look like its attempting to push higher in the short term. 84450 remains the initial upside resistance target, although traders might consider tightening their respective stop levels to a close below the 81850 level (80280 previously).
Large cash adjustment expected
The South Africa 40 Cash Index is expected to adjust for a dividend in the underlying of 301,8 points on Tuesday the 1st of April 2025.
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