Market overview
The JSE All Share closed the week at 114 632.30 increasing by 1.35%. The biggest contributing sector was the oil & gas sector, adding 4.86% while the consumer staples sector decreased by 4.49% during the same period.
Looking globally, developed markets increased by 1.35% (USD) during the week. Emerging markets increased by 3.96% (USD) during the same period.
Local events
• The South African Reserve Bank raised the repo rate by 25bps to 7%, citing rising inflation risks and warning that further tightening may be needed amid higher inflation forecasts and weaker growth outlook.
• South Africa’s trade surplus narrowed to R15.2bn in April, as a sharp rise in imports, driven by mineral product demand, outpaced modest export growth.
• R17.2bn in fuel levy relief is being phased out, increasing pressure on fuel prices and adding to inflation risks.
Global events
• US Core PCE inflation rose 0.2% in April, remaining a key measure of underlying price pressures and shaping expectations for the Fed’s interest rate path.
• China’s manufacturing PMI held at 50.0 in May, signalling borderline economic expansion and uncertainty around industrial demand.
• Oil prices rose nearly 3% to around $99.6 per barrel in late May as renewed US-Iran tensions increased uncertainty around supply disruptions in the Strait of Hormuz.
• $25bn+ in costs from the Iran war are pressuring global companies as rising energy prices and supply disruptions weigh on growth.
Thanks to PPS Investments for the weekly Market Overview
Fiancial Indicators by Sharedata.co.za
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