Market Overview
The FTSE/JSE All Share closed last week at 88 913.81, increasing by 0.22%. The technology and telecommunication sectors were the biggest contributors gaining 6.60% and 1.17% during the week. The basic materials and consumer discretionary sectors were the biggest detractors declining by 3.40% and 2.81% over the same period.
Looking at the MSCI indices, developed markets decreased by 1.40% during the previous week, while emerging markets increased by 2.00% over the same period.
SA Unemployment rate decreases
South Africa’s unemployment rate fell for the second consecutive quarter to 31.9% in Q4 2024, down from 32.1% in the previous three-month period. This marked the lowest jobless rate since Q3 2023, as the number of unemployed individuals decreased by 20 000 to 7.991 million. At the same time, employment rose by 132 000 to 17.078 million, and the labour force increased by 112 000 to 25.069 million.
Bump in SA retail sales
South Africa’s retail sales increased by 3.1% in December 2024, following a downwardly revised 7.6% jump in the previous month, which was the strongest increase since July 2022. The largest positive contributors to this increase were retailers in textiles, clothing, footwear and leather goods. In 2024, retail trade sales increased by 2.5% compared to 2023.
US Fed minutes show rate cuts less likely
Most Fed policymakers acknowledged that the high level of uncertainty warranted a cautious approach when considering further adjustments to monetary policy, minutes from the January 2025 OMC meeting showed. Many participants suggested that the Committee could maintain the policy rate at a restrictive level if the economy remained robust and inflation stayed elevated.
Conversely, several noted that policy could be eased if labour market conditions weakened, economic activity slowed, or inflation returned to 2% sooner than expected.
Thanks to PPS Investments for the weekly Market Overview.
Financial Indicators by Sharedata.co.za
JSE recovers as Budget Speech postponement signals GNU strength
The news that the National Budget that could not be presented by the Minister of Finance last Wednesday brought much controversy amongst politicians, economists, market analysts and investors during the latter part of last week. Read the full Chris Harmse article on IOL Business report here>
1.5% of South Africans pay 61% of all income tax
978,140 South Africans, or 1.5% of the population, pay 60.9% of all personal income tax, the government’s biggest revenue generator. Even more concerning is that only 235,542 South Africans, or 0.4% of the population, pay 33% of all personal income tax. Read the full Daily Investor article here>
South Africa two steps away from major win
South Africa only has two items to address before it can be considered for delisting from the Financial Action Task Force (FATF) greylist, which the National Treasury is optimistic about achieving by October 2025. Read the full Businesstech report here>
Gold holds near record high as weak US data spurs haven buying
Gold traded just shy of last week’s all-time high as unexpectedly weak economic data and rising expectations for inflation helped boost haven demand. Read the full Moneyweb.co.za article here>
Oil falls amid chance exports from Kurdistan will resume
Oil prices slipped in Asia on Monday, extending losses from last week, on the prospect of a resumption of exports from Kurdistan’s oilfields, while investors awaited clarity on talks to resolve Russia’s war on Ukraine. Read the full BusinessDay article here>
US stocks post worst slide in two months on gloomy economic data
US stocks fell the most in two months as a bout of gloomy economic data showed sentiment among consumers and businesses has cooled a month into Donald Trump’s presidency. Read the full Financial Times article here>