Market summary
The JSE All Share closed the week at 110 826.22 decreasing by 1.70%. The biggest contributing sector was the consumer staples sector, adding 0.63% while the oil and gas sector decreased by 4.81% during the same period.
Looking globally, developed markets increased by 0.91% (USD) during the week. Emerging markets increased by 1.29% (USD) during the same period.
Local events
• South Africa’s inflation rate rose up to 4.4% in August, driven by higher transport, food, and electricity costs, although it remained below expectations of 4.5%.
• The South African Reserve Bank raised the repo rate by 25 basis points to 7.25%, citing persistent inflation risks and forecasting inflation above 5% before easing.
• South Africa’s leading business cycle indicator fell 0.9% in July, pointing to weaker economic momentum as slower money supply growth and fewer residential building plans weighed on the outlook.
Global events
• Germany’s Manufacturing PMI eased to 53.8 in September but remained firmly in expansionary territory, reflecting continued strength in industrial activity and new orders.
• Germany’s Ifo Business Climate Index rose to 89.9 in September, its highest level since May 2023, signalling improving business confidence in Europe’s largest economy.
• The US and Iran are exploring a phased deal to reopen the Strait of Hormuz, helping Brent crude oil retreat from highs above $100 per barrel on expectations of improved oil supply.
Thanks to PPS Investments for the weekly Market Summary.
Financial indicators by Sharedata.co.za
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