Market Watch for February 2024

South African Equities: Mixed Performance Amidst Global Growth

The South African equity market witnessed a challenging February, contrasting with the positive sentiment in global markets. Here’s a breakdown:

South Africa

  • Market Decline: The JSE All Share Index fell 2.4%, underperforming emerging market peers.
  • Resource Sector Weakness: Declining commodity prices, particularly in energy and platinum, dragged down resource stocks.
  • Domestic Challenges: Industrial and financial sectors also faced headwinds.
  • China-Linked Resilience:¬†Naspers, Prosus, and Richemont benefited from Chinese stimulus and positive earnings reports.
  • Fiscal Consolidation Focus: The 2024/25 budget prioritizes debt management with initiatives like the GFECRA, but potential risks persist.

Global Markets

  • Positive Trend: Global stock markets trended upward, fueled by strong economic data and corporate earnings.
  • Emerging Market Strength: China, in particular, saw significant growth, while Japan’s Nikkei reached a 30-year high.
  • Fixed Income Headwinds: The Bloomberg Global Aggregate Index dropped 1.3%, with US Treasuries falling due to delayed interest rate cut expectations.
  • Commodities Slump: The Bloomberg Commodity Index declined 1.5%.
  • Mixed Real Estate: Real estate investment trusts saw a small decrease amid rate cut concerns, while high-yield bonds experienced moderate success.

Overall, market dynamics underscore the importance of monitoring global trends and adapting strategies accordingly to navigate evolving market conditions.

To find out more about the current market situation, read the Market Watch for February 2024 below:

Missed last month and need to catch up? Read the January market watch here.