Markets globally have continued to recover from this month's sharp sell-off as governments and central banks prepare to pump almost unlimited cash into the financial system. Our own Reserve Bank has also taken the unusual step of providing stimulus through a bond buying programme.

The JSE rose a further 5% yesterday, adding to Tuesday's 7.5% gain. However, the market is still down 15% this month and the updates coming out of companies aren't good.

Sibanye-Stillwater says it may miss this year's production guidance as it suspends operations at its local gold and platinum mines in preparation for the 21-day national lockdown. Wilson Bayley Holmes-Ovcon has joined a growing number of companies that won't pay recently-declared dividends in order to conserve their cash. And Emira Property Fund has withdrawn its dividend guidance for the year due to the turn of events.

Is it fair to say that the apocalyptic sell-off in global equity markets came completely out of the blue? The intensity and speed with which the meltdown has unfolded has shocked even the most bearish of traders and investors. But is there more to this than meets the eye? Doubtless the failure to contain the Covid-19 virus has been an exacerbating factor but has the assumption of too much risk played a part? In "Fixed income leads the way for equities", top trader Andrew Kinsey unpacks some interesting thoughts for shell shocked investors. Click here to read this latest note from Ingham Analytics.

Also in your newsletter today, Wescoal will continue producing coal to supply Eskom, Sirius is getting fewer enquiries from prospective tenants, and Vivo Energy is taking a cautious approach even though its operations across the continent have been relatively unaffected. Finally, Exxaro Coal will become A2X Markets' 36th listing when it joins the exchange next week.

Stay safe.

Stephen Gunnion

Managing Editor, InceConnect

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