May 2026

Global equity markets rocketed higher over the month, driven by technology stocks and strong earnings revisions. Both the S&P 500 and the Nasdaq reached record highs. Outside of earnings, space and satellite stocks were sent soring by momentum generated from the SpaceX initial public offering filing. Although inflation jumped higher, rates were unchanged as the new Fed chair took his seat. Emerging Markets were the standout performer, as the shortage of semiconductors and other AI infrastructure sent EM indices through the roof.

Locally, markets faltered. Despite dollar weakness and decreased geopolitical tensions surrounding the Strait of Hormuz, the gold price still dropped. This decline took the SA Resources sector with it, along with the broader bourse. Petrol price remained a concern, with no reprieve in sight for local transportation. Inflation increased, and the SARB hiked rates to 7%, reemphasizing their commitment to keep inflation in the lower bracket.

• The JSE All Share ended a volatile month slightly lower, down 0.3%.
• Financials (up 0.9%) managed to end the month in positive territory, while Industrials (down 0.7%) sank, and Resources (down 1.0%) lagged.
• Small-caps (up 0.4%) gained slightly, while Mid-caps (down 3.6%) tumbled, and Large-caps rose (down 0.2%) stumbled lower, broadly in line with the JSE All Share Index.
• South African listed property continued their positive momentum from April, as the ALPI gained 0.6% and S&P SA REIT Index delivered 1.0%.
• SA Nominal Bonds (up 2.9%) posted a strong month, while Inflation-Linked Bonds (up 0.5%) inched higher as concerns around inflation grew.
• Emerging market equities were the standout performers globally, with the MSCI Emerging Market Index returning 9.7%, while developed markets lagged, as the MSCI World returned gains of 4.6%.
• The rand strengthened against major currencies. The rand enjoyed similar gains against the US dollar (Rand appreciated 3.0%), against the Euro (Rand appreciated 3.5%), and against the Pound (Rand appreciated 3.8%).
• Resources experienced large selloffs across the board, as Gold prices (down 1.2%) fell, Platinum (down 2.9%) dropped off steeply, and Brent Crude (down 19.3%) ended lower after declining consistently over the month.

Source: Factset