Globally, markets performed well over the month. Despite the increased geopolitical tensions in the Middle East, rising policy risk and continued supply disruptions from tariffs, markets boasted strong growth. The price of oil rose, as conflict in the Middle East threatened supply routes, adding pressure to inflation. The dollar index is on track for its biggest H1 drop since the 1970s, as its safe haven status has become clouded due to worries over the tax bill and trade deals. The dollar weakness benefited emerging markets, who have been more resilient to tariffs and have outperformed their emerging market peers.
South African equities performed well but lagged the emerging market bucket. The resources sector, which was the main driver of returns locally, was bolstered by a record increase in the price of platinum. Gold remained stable and Naspers and Prosus rallied on Tencent’s growth, which was fuelled by positive sentiment in China. SA bonds continued to show positive returns, as the reserve bank’s potential lowering of the target inflation rate remains topical.
- The JSE All Share gained ground over the month, up 2.4%.
- All three major sectors supported the bourse, as Industrials (up 2.5%) jumped up, Financials (up 1.2%) ticked higher, and Resources (up 4.2%) flew into the green.
- Small-caps (up 2.1%) boasted a modest gain, slightly outperforming Mid-caps (up 2.0%), while Large-caps (up 2.6%) outperformed them both.
- South African property markets lagged in June, as the ALPI dropped 0.9%, while the S&P SA REIT Index lost 1.7%.
- SA Nominal Bonds (up 2.3%) boasted strong returns, while Inflation-Linked Bonds remained muted, up 0.5%.
- Developed market equities closed higher in US dollar terms, as the S&P closed at record highs to end the month. However, the Emerging markets composite stoke the show with incredible outperformance. The MSCI World Index rose 4.3% and the MSCI Emerging Market Index soared 6.1% higher.
- Relative to the U.S. Dollar (Rand appreciated 1.6%), the Euro (Rand depreciated 1.8%) and the Pound Sterling (Rand depreciated 0.0%).
- Gold (up 0.2%) inched its way into the green, while Platinum (up 26.8%) rocketed higher, and Brent Crude gained 5.8% over the month.
Source: Factset
Please note that any information in our posts, documents, infographics, emails etc is general information and should not be considered as providing financial advice. We therefore disclaim all liability and responsibility arising from any reliance placed on such information by any reader, client or visitor to our website. Though we make every effort to ensure the accuracy of the information provided we accept no liability for any inaccuracies.