Market overview
The FTSE/JSE All Share closed last week at 88 717.13, increasing by 1.42%. The technology and consumer discretionary sectors were the biggest contributors gaining 11.84% and 1.40% during the week. The oil & gas and consumer discretionary sectors were the biggest detractors declining by 6.87% and 2.51% over the same period.
Looking at the MSCI indices, developed markets increased by 1.76% during the previous week, while emerging markets increased by 1.54% over the same period.
SA Business confidence remains high
The South African Chamber of Commerce and Industry (SACCI) business confidence index edged down to 120 in January 2025, from December’s 121, which marked the highest level since February 2015. The dip in the index was primarily attributed to lower export volumes, although stronger imports, vehicle sales, and rising tourist numbers had a positive influence. SACCI said that new policies under the coalition government formed in June last year had triggered a broad-based improvement in South African business sentiment but noted that the approach of Donald Trump’s new administration was a source of uncertainty.
Increase in US Inflation
The annual inflation rate in the US edged up to 3% in January 2025, compared to 2.9% in December 2024, and above market forecasts of 2.9%, indicating stalled progress in curbing inflation. The annual core consumer price inflation rate, which excludes items such as food and energy, edged up to 3.3% in January 2025, from 3.2% in the previous month and surpassing market expectations of 3.1%.
UK Sees positive growth
The UK economy grew by 1.4% year-on-year in the fourth quarter of 2024, accelerating from an upwardly revised 1.0% expansion in the previous quarter and surpassing market expectations of 1.1%. It was the fastest GDP growth since Q4 2022, driven primarily by increased household consumption and a rise in government spending.
Thanks to PPS Investments for the Market Overview.
Financial Indicators by Sharedata.co.za
South African rand stable as markets await budget speech
South Africa’s rand was little changed early on Monday as investors await Finance Minister Enoch Godongwana’s budget speech later this week, which will provide insights into Africa’s most industrialised economy. Read the MSN.com article here>
South African markets defy geopolitical tensions with record performance
Last week, much of the discussion in South Africa, both in the media and private conversations, revolved around the actions of the Trump administration against the country. Read the full article on IOL Business Report here>
Here is the expected petrol price for March
Mid-month data points to a much smaller petrol price hike in March 2025 than anticipated at the start of the month, but things could still go either way in the volatile global markets. Read the Businesstech article here>
Oil hardly changed as traders watch Russia-Ukraine peace deal
Oil prices were little changed on Monday as investors eyed developments on a potential Russia-Ukraine peace deal that could ease sanctions disrupting global supply flows. Read the BusinessDay article here>
Gold advances on mounting anxiety over Trump tariff plans
Gold advanced, following its biggest one-day decline in two months, on nervousness over President Donald Trump’s latest trade threats. Read the full Moneyweb.co.za article here>
European markets up amid geopolitical tensions, Anglo American Platinum spin-off
European markets started the trading week with a modest uptick, though caution prevailed as investors remained focused on geopolitical risks and regional security concerns. Rad the full Investing.com article here>