South African Market Update – March 2025
South African equities ended Q1 2025 on a positive note, with the FTSE/JSE All Share Index gaining +3.6% in March and +5.9% year-to-date.
Key Drivers of Market Performance:
- Mining sector dominance:
- Gold miners surged 33% in March, 68% YTD, fuelled by gold prices topping US$3,000/oz.
- Platinum counters rose 40%, and rhodium gained 21%, supporting PGM-heavy portfolios.
- Mixed performance elsewhere:
- Standard Bank (+8%) impressed with full-year results.
- Sun International (+9%) saw growth from its digital strategy.
- Curro (-28%) slumped on weak occupancy and enrolment figures.
Economic Overview:
- Inflation eases: Core CPI at 3.4% YoY, below forecasts.
- Rates on hold: SARB kept the repo rate at 7.5%, citing risks to the inflation outlook.
- Rand recovery: Gained 2% against the US dollar, aided by a weaker dollar and stronger EM sentiment.
South Africa also made progress on FATF greylist reforms, raising the potential for improved capital flows if delisted later in 2025.
Global Market Overview – Q1 2025
Global markets faced elevated volatility, driven by trade tensions and diverging fiscal strategies.
Regional Highlights:
- Emerging markets led gains – especially China and South Korea.
- Gold climbed 19%, while value stocks beat growth stocks.
- US: Trade tariffs increased uncertainty. Fed held rates, with possible cuts on the horizon.
- Europe: Fiscal stimulus boosted sentiment; German Bunds sold off while equities rallied.
- UK: £8.4bn in spending cuts announced. Despite this, UK equities outperformed peers.
- Asia: Chinese equities gained 15%; India and Japan underperformed.
Investment Insight:
This quarter reaffirmed the importance of diversification across regions and asset classes. Balanced portfolios proved resilient in the face of policy shifts and economic uncertainty.
Read more below in the Market Watch for March.
Missed last month and need to catch up? Read the February market watch here.
