Market Overview
The FTSE/JSE All Share closed at 77 910,97 last week, decreasing by 1.06%. Oil & gas and technology were the best performing sectors increasing by 2.99% and 0.99% respectively. Financials and telecommunications were the worst performing sectors increasing by 2.57% and 2.54% respectively during the previous week.
Looking at the MSCI indices, developed markets decrease by 0.08% during the previous week, while emerging markets decreased by 1.95% over the same period.
SA inflation still stubborn
Consumer price inflation increased by 7.1% year-on-year in March 2023, slightly up from the 7.0% year-on-year print in the previous month. This is the second consecutive increase after inflation rose from 6.9% to 7.0% year-on-year last month. This means that inflation has averaged 7.0% for the year to date and needs to moderate for the remainder of the year to attain the 6.3% average that the South African Reserve Bank forecasted in the most recent Monetary Policy Committee (MPC) meeting. Month-on-month inflation increased by 1.0%, compared to the 0.7% increase in February.
Although there was only a small increase to inflation in March, the concern is that the effect of the 4.25% of interest rate hikes since the start of this hiking cycle is more protracted and not yet having the desired weakening effect on inflation. After the surprise 50 basis point hike post the last MPC meeting, this increase in inflation may signal that we have not yet reached the end of the hiking cycle.
Oil slips as rates and growth jitters trump tighter supply outlook
Oil prices fell on Monday as concerns about rising interest rates, the global economy and the outlook for fuel demand outweighed support from the prospect of tighter supplies on Opec+ supply cuts. Read the full Business Day article here>
Four reasons why investors expect US dollar to keep sliding
A surprisingly large cohort of investors believe that either yen or yuan appreciation will be the primary cause of dollar decline. read the full article published in Moneyweb here>
Rand starts week on back foot as dollar gains
The rand fell in early trade on Monday as the dollar advanced, at the start of a week where trading could be thinner and market conditions more volatile because of upcoming public holidays. Read the full Moneyweb article here>
Gold inches down amid caution before Bank moves
Firmer US Treasury yields after flash PMI data is keeping the downward pressure on prices, analyst says. Read the full Business Day report here>
Chinese Leaders Highlight Economic Risks as Recovery Takes Hold
Chinese President Xi Jinping and other top leaders highlighted several risks the economy still faces as growth rebounds this year, repeating the need for more self-reliance in key areas like technology in the face of growing competition from the US. read the full article from Bloomberg here>