Market overview
The FTSE/JSE All Share closed last week at 85 608.50, increasing by 2.07%. The basic materials and consumer discretionary sectors were the biggest contributors gaining 4.79% and 4.63% during the week. The Technology and Telecommunication sectors were the biggest detractors losing -0.72% and -1.24% respectively over the same period.
Looking at the MSCI indices, developed markets increased by 1.53% during the previous week, while emerging markets increased by 0.23% over the same period.
SA Inflation reaches 4-year low
South Africa’s annual inflation rate fell for the 5th consecutive month in October, hitting a near four-year low of 2.8%, down from 3.8% in the previous month. Figures came slightly below market forecasts of 3.1%. Falling fuel prices remain the primary factor behind the slowdown. Petrol and diesel prices declined by 5.3% between September and October, taking the annual rate for fuel to -19.1%.
Slight decline in SA interest rates
The South African Reserve Bank reduced its key interest rate by 25 basis points to 7.75% during their November meeting, bringing borrowing costs to their lowest level since April 2023. Policymakers stressed that while inflation is well-contained in the short term, the medium-term outlook carries significant uncertainties and potential for upside risks.
Thanks to PPS Investments for the Market Overview
Financial Indicators by Sharedata.co.za
South African rand steady at start of data-packed week
South Africa’s rand was steady on Monday, as investors started the week on a cautious note ahead of a slew of month-end economic data releases. Read the full Marketscreener.com article here>
JSE records seventh consecutive day of gains amid rising gold prices
Stocks on the JSE ended the week on Friday marginally higher, with the All Share Index just 0.1% higher to 85 608 index points after a choppy session, achieving its seventh consecutive day of gains and a weekly rise of 2.1%. Read the IOL Business article here>
What to expect for interest rates in South Africa in 2025
The South African Reserve Bank’s (SARB’s) decision to cut interest rates by 25 basis points this week came as no surprise, with many economists predicting the more cautious approach from the Monetary Policy Committee. Read the full BusinessTech article here>
Oil slips but stays close to almost two-week highs
Oil prices retreated on Monday following 6% gains last week, but remained near two-week highs as geopolitical tension grew between Western powers and major oil producers Russia and Iran, raising the risk of supply disruption. Read the full BusinessDay report here>
Gold tumbles as traders turn attention to the Fed’s next move
Gold tumbled after surging by the most in 20 months last week, with traders ignoring a softer US dollar and shifting their attention to the Federal Reserve’s upcoming interest-rate decision. Read the full Moneyweb article here>