Small players set for year of the bull
Analysts say small and mid-cap shares could outdo big boys
The JSE All Share index ended 2017 on a high — closing 16.63% stronger after breaching the 60000 level for the first time during the year. While it is unclear if this year will yield the same for investors, some analysts are pinning their hopes on small, domestically focused companies. Despite the fall in Steinhoff’s share price just weeks before year-end, 2017 was dominated by the Top 40 shares such as Naspers and Richemont. Naspers’s share price doubled before closing the year almost 70% higher, while Richemont’s share price saw growth of 24%. Some portfolio managers think the pace of these gains is unlikely to continue. For the year ahead a number of portfolio managers believe small-and mid-cap shares could shine if the local economy continues to improve after the recession last year, and if the government implements policy changes. AlphaWealth fund manager Keith McLachlan said he expected it to be a good year for the JSE as the election of Cyril Ramaphosa as ANC president indica...
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