Market Watch for July 2023

South African Stocks and Bonds Soared in July as Emerging Markets Rebounded.

July proved to be the best month for emerging markets such as South Africa since January, as investors cheered signs of inflation in the US easing, hopes of stimulus in China, and a weak US dollar.

Commodity prices rose significantly, with the S&P GSCI gaining 10.7%. This helped to boost the rand, which strengthened against the dollar. As a result, South African stocks and bonds performed very well.

The FTSE JSE All Share Index rose by 3.9% in July, while the FTSE JSE Capped SWIX rose by 4.1%. Financials were by far the best performing segment of the market, returning 7.9%. Resources were the second-best performing sector, gaining 3.7%.

The AllBond Index returned 2.1%, while inflation-linked bonds delivered 1.4%.

In other news, Naspers and Prosus have announced that they will be removing their crossholding structure. This move is seen as a positive step towards increasing shareholder value and improving corporate governance.

Investors can expect a more streamlined and efficient structure going forward. Naspers and Prosus gained 3.4% and 2.8% respectively in July.

To find out more about the current market situation, read the Market Watch for July 2023 below:

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