Market overview
The FTSE/JSE All Share closed last week at 76 851.75, up 0.19%. The consumer discretionary and technology sectors were the biggest contributors, increasing by 4.43% and 3.02% during the week. The basic material and oil & gas sectors were the biggest detractors, decreasing by 3.55% and 3.18% during the same period.
Looking at the MSCI indices, developed markets increased by 1.01% during the week while emerging markets increased by 2.36% over the same period.
SA business confidence improves
The RMB/BER business confidence index in South Africa rose to 35 in Q2 2024, the highest level in over a year, from 30 in the previous quarter. This suggests a slight reduction in business pessimism after two consecutive quarters of declines, primarily due to the suspension of load shedding for two months.
SA growth slightly below expectations
South Africa’s economy recorded a small contraction in the first quarter of 2024, following an upwardly revised 1.4% growth in the previous period and slightly below market estimates of a 0.6% increase. Six out of 10 industries tracked by Statistics South Africa contracted in the first three months of the year, led by construction and mining which declined 3.1% and 2.3% respectively. Consumer spending also made a dent in first-quarter growth, as final consumption expenditure contracted by 0.3%.
Eurozone cuts interest rates
The European Central Bank (ECB) cut interest rates by 0.25% in June, as expected, ending nine months of stable rates after inflation fell by more than 2.5% since September 2023. Domestic price pressures, on the other hand, remain high, implying that inflation will persist. To address this, the Council aims to keep policy rates sufficiently restrictive, utilizing a data-dependent approach.
Thanks to PPS Investments for the weekly Market overview.
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