MODULE FINANCIAL MARKETS AND REGULATIONS (FINANCIAL MANAGEMENT 3A) TOTAL MARKS 20 MARKS QUESTION ONE (20 Marks) 1.1 Read the following article and answer the questions that follow: Resources lift the JSE Oct 01 2019 18:04 Musa Makoni, GT247.com 5S3 The local bourse shrugged the trend in other global stocks as it closed firmer on Tuesday primarily on the back of gains in the resources sector. With Chinese markets closed for a holiday, there was little sentiment filtering from that market. In Japan, the Nikkei eventually closed 0.59% firmer. Stocks in Europe were dragged lower by a flurry of weaker than expected manufacturing PMI from most of the bloc's members. This reignited fear of a global slowing economy which w manufacturing PMI data which printed its lowest le y which was worsened by a reading of US med its lowest level since the financial crisis of 2000. There was bad news in terms of local economic PMI reading for September which fell to 41. September which fell to 41.6 from a prior recording of 45 al economic data via the release of the ABSA Manufacturing This was also worse than the forecast of 43. th a session low of R15.35 before it was recorded tra Torecast of 43. The rand slumped further in today's session as het was recorded trading 1.38% weaker at R15.34/$ at 17:00. Murray & Roberts (JSE:MUR) closed amongst the da R12.35 following the release of a statement announ to acquire all of its issued share capital. ed amongst the day's biggest losers after it lost 6.37% to close at or a statement announcing the lapsing of the mandatory offer by ATON Sector peer, Raubex [JSE:RBXI also traded under significant pressure ev lower at R18.20. Retailers lost further ground on the back of the weaken aded under significant pressure eventually closing 4.51% Massmart JSE:MSM) fell 2.72% to close at R42.64, Shoprite SE Tell 2.72% to close at R42.64. Shoprite IJSE:SHP] dropped 1.65% to close at R120.62, and Woolworths (JSE:WHL) lost 1.33% to end the day at R54.35. Commodity trading giant Glencore IJSE:GLNI lost 2.51% as it closed at R44.73, while food producer Famous Brands IJSE:FBR) lost 3.69% to close at R78.47. ISE winners and losers 1 October 10.955 ROK REIT PLC Steinhoff national Holidin Rafoods End/South Africa Sibanwe Gold Ltd Harmony Gold Mining Cound Aspen Pharmaca Holdings Ltd Kumbe Iron Ove Ltd African Rainbow Capital est MAS Real Estate Inc Sunternational Led/South Af Famous Brands Ltd Tsogo Sun Hotels Ltd Cashbuild Afrimat tid Rus Group Led Nama Laid Murray & Roberts Holdines und Adtech Ltd RDI REIT [JSE:RPL) rallied significantly towards the close as it ended the day 10.95% higher at R23.00 However, most of the gains on the day were driven by miners. Although modest, index giant BHP Group added 0.63% to close at R349.53 More significant gains were recorded for Sibanye Stillwater at R22.14, Harmony Gold IJSE:HAR) which rallied 4.87% to end the Ashanti JSE:ANG) which climbed 3.69% to R294.56. ter (JSE:SGL) which gained 5.53% to close % to end the day at R45.41. AngloGold Sasol [JSE:SOL found some traction as it gained Exxaro Resources (JSE:EXXI managed to gain 2.6% to close at action as it gained 3.53% to close at R262.00, while coal miner o to gain 2.6% to close at R134.00. Kumba Iron Ore (JSE:KIO] surged 4.59% to close at ko at R4.44 after gaining 4.47%. vo surged 4.59% to close at R391 65, and African Rainbow Capital closed The JSE All-Share index eventually closed 0.26% firmer while the blue-chip JSE Top-40 firmer while the blue-chip JSE Top-40 index also managed to add 0.26%. he resources index recorded significant gains of 1.11% while the Financials index was unchanged on the day. The Industrials index shed 0.11%. At 17:00, Gold was 0.755 firmer at $1483.67/oz. Platinum was down 0.37% at $879.90/oz, and Palladium had lost 0.75% to trade at $1663.90/oz. Brent crude was marginally firmer as it was recorded trading 0.62% firmer at $59.63/barrel just after the JSE close. 1.1.1 Identify and explain three (3) benefits of investing in global stocks. 1.1.2 Provide four advantages which investors maximize on by investing through the JSE. 1.1.3 Explain the purpose of the JSE in South Africa. 1.1.4 Explain the importance of 'Indices' 1.1.5 Determine one shortfall of investing through the JSE. MODULE FINANCIAL MARKETS AND REGULATIONS (FINANCIAL MANAGEMENT 3A) TOTAL MARKS 20 MARKS QUESTION ONE (20 Marks) 1.1 Read the following article and answer the questions that follow: Resources lift the JSE Oct 01 2019 18:04 Musa Makoni, GT247.com 5S3 The local bourse shrugged the trend in other global stocks as it closed firmer on Tuesday primarily on the back of gains in the resources sector. With Chinese markets closed for a holiday, there was little sentiment filtering from that market. In Japan, the Nikkei eventually closed 0.59% firmer. Stocks in Europe were dragged lower by a flurry of weaker than expected manufacturing PMI from most of the bloc's members. This reignited fear of a global slowing economy which w manufacturing PMI data which printed its lowest le y which was worsened by a reading of US med its lowest level since the financial crisis of 2000. There was bad news in terms of local economic PMI reading for September which fell to 41. September which fell to 41.6 from a prior recording of 45 al economic data via the release of the ABSA Manufacturing This was also worse than the forecast of 43. th a session low of R15.35 before it was recorded tra Torecast of 43. The rand slumped further in today's session as het was recorded trading 1.38% weaker at R15.34/$ at 17:00. Murray & Roberts (JSE:MUR) closed amongst the da R12.35 following the release of a statement announ to acquire all of its issued share capital. ed amongst the day's biggest losers after it lost 6.37% to close at or a statement announcing the lapsing of the mandatory offer by ATON Sector peer, Raubex [JSE:RBXI also traded under significant pressure ev lower at R18.20. Retailers lost further ground on the back of the weaken aded under significant pressure eventually closing 4.51% Massmart JSE:MSM) fell 2.72% to close at R42.64, Shoprite SE Tell 2.72% to close at R42.64. Shoprite IJSE:SHP] dropped 1.65% to close at R120.62, and Woolworths (JSE:WHL) lost 1.33% to end the day at R54.35. Commodity trading giant Glencore IJSE:GLNI lost 2.51% as it closed at R44.73, while food producer Famous Brands IJSE:FBR) lost 3.69% to close at R78.47. ISE winners and losers 1 October 10.955 ROK REIT PLC Steinhoff national Holidin Rafoods End/South Africa Sibanwe Gold Ltd Harmony Gold Mining Cound Aspen Pharmaca Holdings Ltd Kumbe Iron Ove Ltd African Rainbow Capital est MAS Real Estate Inc Sunternational Led/South Af Famous Brands Ltd Tsogo Sun Hotels Ltd Cashbuild Afrimat tid Rus Group Led Nama Laid Murray & Roberts Holdines und Adtech Ltd RDI REIT [JSE:RPL) rallied significantly towards the close as it ended the day 10.95% higher at R23.00 However, most of the gains on the day were driven by miners. Although modest, index giant BHP Group added 0.63% to close at R349.53 More significant gains were recorded for Sibanye Stillwater at R22.14, Harmony Gold IJSE:HAR) which rallied 4.87% to end the Ashanti JSE:ANG) which climbed 3.69% to R294.56. ter (JSE:SGL) which gained 5.53% to close % to end the day at R45.41. AngloGold Sasol [JSE:SOL found some traction as it gained Exxaro Resources (JSE:EXXI managed to gain 2.6% to close at action as it gained 3.53% to close at R262.00, while coal miner o to gain 2.6% to close at R134.00. Kumba Iron Ore (JSE:KIO] surged 4.59% to close at ko at R4.44 after gaining 4.47%. vo surged 4.59% to close at R391 65, and African Rainbow Capital closed The JSE All-Share index eventually closed 0.26% firmer while the blue-chip JSE Top-40 firmer while the blue-chip JSE Top-40 index also managed to add 0.26%. he resources index recorded significant gains of 1.11% while the Financials index was unchanged on the day. The Industrials index shed 0.11%. At 17:00, Gold was 0.755 firmer at $1483.67/oz. Platinum was down 0.37% at $879.90/oz, and Palladium had lost 0.75% to trade at $1663.90/oz. Brent crude was marginally firmer as it was recorded trading 0.62% firmer at $59.63/barrel just after the JSE close. 1.1.1 Identify and explain three (3) benefits of investing in global stocks. 1.1.2 Provide four advantages which investors maximize on by investing through the JSE. 1.1.3 Explain the purpose of the JSE in South Africa. 1.1.4 Explain the importance of 'Indices' 1.1.5 Determine one shortfall of investing through the JSE