The JSE ended the third quarter 2 points off its all-time peak. It was an extraordinary performance considering the stresses that financial markets suffered during the quarter. Delinquencies in US subprime mortgage loans, the slump in their housing sales and tightening international credit markets raised worries about a global slowdown that sent share prices on world exchanges plunging. Bold action by central bankers and the Federal Reserve Bank's decision to cut interest rates for the first time in four years raised hopes that a full scale crisis would be averted but mounting views that the risks in the US economy could spread to other global hubs are beginning to overshadow the stock markets' recovery. JSE investors were sheltered by a strong performance in resource shares. A collapse in the US dollar to historic lows against the euro pressed investors into the safe haven of precious metals. The JSE resource index climbed 12% in the three-month period, making its accumulated gain in 2007 an impressive 35%. Overall the JSE added 6% in the quarter; industrials performed well edging up 4% but financials lost ground falling 2%. The Sasfin TwentyTen Fund, which has limited exposure to commodity prices through Exxaro and Mittal, advanced 4.5% in the quarter, lagging the overall index, but outperforming its broader benchmark, the Financial and Industrial Index.

June was the first negative month this year with the JSE All Share Index retreating 1%, even though at one point during the month the index traded at an all time high. Despite the minor setback in June the JSE is still up a healthy 14% this year. After the impressive gains experienced earlier in the year, it was perfectly normal to expect markets to take time-out allowing earnings and data to catch up with share prices. Although, over and above that, Investors had to deal with a barrage of damaging news from recession in the US housing markets to the threat of rising interest rates internationally. The JSE rebounded in the first week of July led largely by a revival in mining shares responding to a rally in oil and base metal prices. The introduction of the National Credit Act in June together with the threat of further interest rate hikes encouraged investors to rotate from the durable and credit retailers to the more defensive cash suppliers. Money also flowed into fixed investment stocks encouraged by an inspiring trading update from Aveng. The Sasfin TwentyTen Fund lost some ground in June in line with the trend in the overall market but with the outlook for growth in South Africa favourable the companies in the fund remain on track to benefit.

After a short but sharp correction at the end of February, world markets regained their composure and began recovering lost ground, despite ongoing worries over the health of the US economy, rising oil prices resulting from the standoff between western nations and Iran, and uncertainty over inflation levels. The JSE closed the month at a fresh all-time high, with resources contributing significantly to the climb in the overall index, playing down views that global demand was moderating. The copper price bounced well off its lows, gold and platinum moved higher, while oil threatened to break above $70 a barrel. The Sasfin TwentyTen Fund recorded a new high on 30 March, making its percentage gain 14.25% in 2007 and 76% since its inception in November 2005. During March MTN, AVI and Basil Read reported good earnings numbers with the prospect of further growth into the future, while Eskom and ACSA (Airports Company) increased their spending budgets considerably, escalating the overall amount that the government will need to spend to rebuild the country's infrastructure. Although commentators believe that world markets face a period of uncertainty and that a correction is due, local corporates continue to view the future with confidence.

The JSE reached new highs during December, propelled by the prospects of increased consumer spending over the holiday period as well as a favourable outlook for corporate earnings in 2007. As South Africa approaches the World Cup 2010, increased infrastructure activity is evident from the traffic diversions in Gauteng created by work on the Gautrain project, while new building and shopping mall sites are further proof of robust business expansion. The recent increase in interest rates could hamper consumer demand in 2007, but spending on capital formation should continue at a vigorous pace as the country creates the capacity for future economic growth. The Sasfin TwentyTen fund continues to perform well, in line with the gains in the overall equity market, and, according to data provided by Profile Media was one of the top performing general equity unit trusts in 2006.