Market overview
The JSE All Share closed the week at 110 355.40 decreasing by 0.98%. The biggest contributing sector was the technology sector, adding 8.44% while the basic materials sector decreased by 4.25% during the same period.
Looking globally, developed markets increased by 0.54% (USD) during the week. Emerging markets decreased by 1.74% (USD) during the same period.
Local events
• South Africa’s manufacturing output fell 4.3% year on year in May, as weaker production in food, metals and machinery sectors weighed on economic activity.
• The City of Johannesburg plans to repay R2.4 billion to restore R3.6 billion in government funding, highlighting ongoing fiscal and infrastructure challenges.
• Standard Bank forecasts South Africa’s economy to grow by 1.7% in 2027 and 2.0% in 2028, reflecting improving economic momentum and business confidence.
Global events
• Minutes from the Fed’s June meeting showed officials remain concerned about inflation, with some supporting further interest rate hikes to return inflation to the 2% target.
• China’s inflation rate eased to 1.0% in June, signalling moderating consumer demand in the world’s second largest economy despite continued resilience in key sectors.
• The Federal Reserve warned that tariffs, higher energy costs and strong AI-related demand have accelerated inflation, reinforcing expectations of higher for longer interest rates.
• Germany’s trade surplus widened to €19.1 billion in May, the largest since February, as stronger exports signalled resilient economic activity in Europe’s largest economy.
Thanks to PPS Investments for the weekly Market Overview.
Financial Indicators by Sharedata.co.za
What to expect for interest rates in South Africa next week
Bank of America believes that the South African Reserve Bank (SARB) will hike interest rates in its July Monetary Policy Committee (MPC) meeting amid heightened inflation. See the full article on Businesstech.co.za here>
SA financial markets nervous and sideways: Strait of Hormuz open or closed?
After a week of strong recovery on global and domestic markets, market sentiment turned sour last week after renewed attacks by Iran and the US on military and other targets, especially in the Strait of Hormuz. Read the full article on IOL BUsiness-Report here>
South Africa Plans First Strategic Oil Boost Since Apartheid
South Africa plans to increase its strategic oil reserves for the first time since the apartheid government stockpiled crude, adding to measures across the continent to mitigate supply shocks. See the full article on Financialpost.com here>
Macroeconomic buffers helped shield rand during Iran war: Sarb research chief
South Africa’s macroeconomic buffers helped limit the rand’s losses during the war between Iran and the US, according to the South African Reserve Bank’s newly appointed head of economic research. Read the full Businessday article here>
Gold and silver drop as Mideast strikes heighten rate-hike risks
Gold and silver tumbled after the US and Iran exchanged fresh strikes over the weekend, sending energy prices higher and once more raising the prospects for interest-rate hikes to combat inflation. Read the full Moneyweb article here>
Tech stocks skid, bond yields rise as Gulf conflict sends oil surging
Tech stocks fell sharply and government bond yields rose on Monday as investors grappled with concerns over a fresh escalation in the Middle East conflict and valuations in AI-related shares. See the latest commentary on MarketScreener.com here>