If stock markets reflect a country’s economic fundamentals, then what accounts for the Johannesburg Stock Exchange’s buoyancy at a time of slowing growth, rising inflation and high interest rates? Seemingly defying gravity, the JSE’s All Share index peaked at a record high of 33,233 in late May, shrugging off a slew of bad news, including the xenophobic violence that took place that very week.

There are two main explanations for this. First, broad market averages disguise more than they reveal. David Shapiro, a consultant at Frankel Pollak Securities, shows how the JSE is dominated by a handful of stocks, either resource companies or businesses that generate the bulk of their income offshore.