Market Overview
The FTSE/JSE All Share closed last week at 89 518.75, increasing by 1.85%. The basic materials and telecommunication sectors were the biggest contributors gaining 6.04% and 3.07% during the week. The oil and gas and technology sectors were the biggest detractors declining by 2.24% and 1.31% over the same period.
Looking at the MSCI indices, developed markets increased by 0.68% during the previous week, while emerging markets increased by 1.15% over the same period.
SA Headline inflation unchanged, core inflation lower
South Africa’s inflation rate remained unchanged at 3.2% in February, its highest in four months but still well below the South African Reserve Bank’s 4.5% midpoint target. Inflation increased for food and non-alcoholic beverages, while price growth eased slightly for housing and utilities. Meanwhile, core inflation—which excludes food, non-alcoholic beverages, fuel, and energy—fell to 3.4%, its lowest since December 2021.
SA Rates unchanged
The South African Reserve Bank kept the repo rate unchanged at 7.5% during its 2025 March meeting, with risks to economic stability calling for caution. Inflation, while contained, has edged higher, with goods inflation remaining low but services inflation rising. VAT hikes and CPI reweighting affected the outlook, but lower fuel prices and electricity tariffs improved projections.
US Rates unchanged and growth forecasts lowered
The Fed kept the federal funds rate unchanged at 4.25%-4.5% during its March 2025 meeting, extending the pause in its rate-cut cycle that began in January, and in line with expectations. Policymakers noted that uncertainty around the economic outlook has increased but still anticipate reducing interest rates by around 50 bps this year, the same as in the December projection. Meanwhile, GDP growth forecasts were revised lower for this year to 1.7% from 2.1% seen in December. Growth projections were also revised down for 2026 (1.8% vs 2%) and 2027 (1.8% vs 1.9%).
Thanks to PPS Investments for the weekly Market Overview.
Financial Indicators by Sharedata.co.za
South African rand firms as markets await US tariff clarity
South Africa’s rand strengthened on Monday as investors awaited clarity on the next round of tariffs from U.S. President Donald Trump. See the Reuters report here>
Oil slips as focus turns to Russia-Ukraine talks
Oil prices slipped on Monday as investors assessed the outlook for ceasefire talks aimed at ending the Russia-Ukraine war, which could lead to an increase in Russian oil to global markets. Read the BusinessDay report here>
Gold steady as traders mull prospect of targeted US tariffs
Gold was steady after a report indicating that the next round of President Donald Trump’s tariffs would be more measured than previously suggested. Bullion traded around $3 029 an ounce, not far below a record high reached on Thursday. Read the Moneyweb article here>
Eurozone business activity rises as Germany’s manufacturing rebounds
Europe’s economic engine might finally be shifting into gear, as a rebound in German manufacturing and easing price pressures across the euro area offered a glimmer of hope that the continent’s economy could be turning a corner. Read the Euronews article on MSN here>