The current JSE retreat is an opportunity for astute investors in view of macro factors and the ability of selected players in the corporate sector to bolster profits in an economy with no slack but plenty of skill shortages.
This largely positive market assessment is being circulated to investors by Imara Asset Management South Africa (IAMSA), a Johannesburg subsidiary of the Botswana-incorporated Imara financial services group.
The asset manager has advised 'cautious optimism' rather than 'exuberant optimism' since the New Year and sees recent JSE softness as a chance for canny stock-picking rather than a reason to panic.
Dave Eliot, chief executive officer of IAMSA, points out: 'The South African economy is growing around the 5% real GDP level and company profits thus far this year remain ahead of expectation.
"Infrastructure and associated spend continues to pump along. Consumer demand, the previous driver of the economy, is at last slowing but importantly not crashing.
"There is no slack in our economy and shortages, especially of skilled manpower, have become the name of the game. Watch margins rise!"
He adds: "We welcome the current pullback in share prices and look forward to being able to buy selected stocks on attractive yields."
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