Market overview
The FTSE/JSE All Share closed last week at 87 015.81, decreasing by 0.21%. The oil & gas and basic materials sectors were the biggest contributors gaining 2.77% and 2.30% during the week. The financials and telecommunication sectors were the biggest detractors losing -1.93% and -1.52% respectively over the same period.
Looking at the MSCI indices, developed markets decreased by 1.25% during the previous week, while emerging markets decreased by 1.75% over the same period.
SA Inflation drops below SARB bands
Annual consumer price inflation was 3.8% in September 2024, down from 4.4% in August 2024. Softer oil prices, moderating food prices and a stronger rand have helped ease price pressures. The currency has gained almost 5% since a business-friendly governing alliance took power in June. Looking ahead, the current rate of inflation should offer the SARB some peace of mind. While most economists expect the deceleration in inflation will encourage the SARB’s monetary policy committee to cut rates by a quarter point for a successive meeting in November, some see scope for a larger reduction.
However, South Africa’s rapid switch to become a net importer of fuel creates supply risks requiring infrastructure to store and transport fuel. The SARB may also be cautious about the potential impact of conflicts in the Middle East. While disinflation is on track and policymakers forecast inflation will hold in the bottom half of their 3.0%-6.0% target band over the coming quarters, uncertainty remains. It is cautioned that risks to the inflation outlook remain, including the uncertainty over how far and how fast global financial conditions will ease as other central banks cut borrowing costs.
Thanks to PPS Investments for the Market Overview.
Financial indicators by Sharedata.co.za
South African rand flat; mid-term budget the week’s highlight
South Africa’s rand was little changed in early trade on Monday, with Wednesday’s mid-term budget the main focal point for investors this week. Read the full Marketscreener.co.za article here>
SA markets await MTBPS amid global economic shifts, says Chris Harmse
South African financial markets traded mostly sideways last week despite the much better-than-expected inflation rate figure and increases in the prices of Gold and especially Platinum. Read the full IOL Business report here>
Bad news for petrol prices next week
South African motorists should brace for a petrol price hike next week, with recoveries at the end of the third week of October not showing any improvement. Read the full Businesstech.co.za article here>
Stocks climb, oil sinks at start of pivotal week: Markets wrap
A sense of relief percolated through markets after Israel’s retaliatory strikes against Iran avoided oil facilities. Crude tumbled, while bonds fell and stocks rose as haven demand faded at the start of what’s shaping to be a pivotal week for investors. Read the full Moneyweb.co.za article here>
Gold slips on stronger dollar
Gold prices fell on Monday as the dollar held firm, while investors awaited US economic data for fresh insights on the Federal Reserve’s monetary policy path. Read the full BusinessDay report here>