Market Overview
The FTSE/JSE All Share closed last week at 85 942.69, decreasing by 3.34%. The telecommunication and consumer staples sectors were the biggest contributors gaining 2.41% and 0.84% during the week. The technology and basic materials sectors were the biggest detractors declining by 9.73% and 6.85% over the same period.
Looking at the MSCI indices, developed markets decreased by 0.96% during the previous week, while emerging markets decreased by 4.13% over the same period.
SA Inflation sees slight uptick
South Africa’s inflation rate increased for the third consecutive month to 3.2% in January, the highest in four months, compared with market forecasts of 3.3%. however, it remains well below the South African Reserve Bank’s preferred midpoint target of 4.5%. The primary drivers of the increase were food and non-alcoholic beverages, housing and utilities and restaurants and hotels.
The core inflation rate, which excludes volatile items such as food, non-alcoholic beverages, fuel, and energy, eased to 3.5% in January 2025, the lowest since February 2022, from 3.6% in December 2024.
Producer price inflation rose to 1.1% in January 2025, up from 0.7% in the previous month and almost in line with market forecasts of 1%. This marked the strongest increase in producer prices since last August, mainly on account of prices of food products, beverages and tobacco products.
US Q4 growth in line with expectations
The US economy expanded an annualised 2.3% in Q4 2024, the slowest growth in three quarters, down from 3.1% in Q3 and in line with the advance estimate. Personal consumption remained the main driver of growth, increasing by 4.2%, the most since Q1 2023.
Thanks to PPS Investments for the weekly Market Overview.
Financial Indicators by Sharedata.co.za
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