July 2025

Global equity enjoyed strong returns over the month, as all major developed market indices grew. Returns took a slight haircut in the closing days of the month, as the realities of the US tariffs came to fruition. The S&P and tech-heavy Nasdaq outperformed their European counterparts, as both Nvidia and Microsoft joined the $4 Trillion club. Towards the east, emerging markets once again outperformed their developed market peers. The ongoing trade deal negotiation between the two economic powerhouses continues to be seen as positive by markets.

South African equities enjoyed their fifth consecutive month of positive returns. They have once again been bolstered by the resources sector, though the financials and industrials sectors performed well too. Investor sentiment towards South African equities was not biased to size, as the small, mid and large caps all enjoyed increases. As local inflation remains low, inflation-linked bonds continue to return modest performance. However, the second rate cut of the year has sent longer-term bond yields lower and the nominal bond index upwards.

• The JSE All Share recorded its fifth straight month of gains, up 2.3%.
• All three major sectors supported the bourse, as Industrials (up 2.5%), and Financials (up 1.3%) continued to grow, while Resources (up 5.1%) rocketed higher.
• Small-caps (up 3.1%) and Mid-caps (up 3.3%) boasted healthy returns, outperforming their larger peers, as the Large-caps (up 2.3%) reported modest gains.
• The South African property markets beat most other asset classes in July, as the ALPI added 4.8%, and the S&P SA REIT Index grew 6.0%.
• SA Nominal Bonds (up 2.7%) continued their positive performance. Inflation-Linked Bonds inched higher, up 0.6%, as SA inflation remains muted.
• Developed market equities closed higher in US dollar terms, as the MSCI World Index rose 1.3%, however, their emerging market peers continued to outperform, as the MSCI Emerging Market Index soared 2.0% higher.
• The rand had a mixed month in terms of performance, as the US dollar weakened, but other major currencies appreciated. Relative to the U.S. Dollar (Rand appreciated 1.8%), the Euro (Rand depreciated 0.8%) and the Pound Sterling (Rand depreciated 1.7%).
• Resources were generally lower, as Gold (up 0.0%) dipped slightly and Platinum (down 1.7%) dropped. Brent Crude gained 7.3% over the month, as geopolitical tensions escalated.

Source: Factset