An assessment of JSE listed companies' stock performance in a pugnacious South African macroeconomic environment

Abstract

As South Africa moves through a turbulent period, with an economic landscape filled with landmines in a pugnacious environment, we as a nation need to have a better understanding of all the economic building blocks and its impact on our daily lives. The research paper found the interaction between five macroeconomic citadels which forms the backbone and support structure in every modern economy in the world. 1. Exchange rate 2. Government debt 3. GDP growth 4. Inflation 5. Unemployment The research found a connection, correlation and impact regarding each of these elements. Its broader economic impact on the stock market performance for various size companies are also determined. This was achieved by conducting research on the market performance in the last 15 years and to evaluate through a quantitative study the performance under various conditions. The purpose of the research was to create an economic model that will be a tool for business executives to form part of a strategy towards growth and sustainability. The momentum curve was designed to create economic mass that gives weight to the importance of each element and to guide the economic velocity to the optimum economic momentum, to become a model for government, business and labour to set out a strategic economic plan based on academic research.