Market Overview
The FTSE/JSE All Share closed at 77 136.06 last week, increasing by 0.71%. During the previous week, telecommunication and basic material sectors were the biggest contributors increasing by 6.67% and 4.04% respectively. The consumer discretionary and consumer staples sectors were the biggest detractors decreasing by 3.59% and 3.10% respectively.
Looking at the MSCI indices, developed markets increased by 1.67% during the previous week while emerging markets increased by 1.26% over the same period.
SA manufacturing continues to struggle
The seasonally adjusted Absa Purchasing Managers’ Index fell to 49.2 points in May of 2023, from 49.8 in the prior month. The latest reading pointed to the fourth consecutive month of contraction in manufacturing activity, amid a sharp deterioration in the business outlook to its weakest since early 2020, amid the ongoing power crisis in South Africa.
Euro inflation in decline
The consumer price inflation rate in the Euro Area fell to 6.1% in May, down from 7.0% in the previous month and below market expectations of 6.3%. The rate hit its lowest level since February 2022, though it remained significantly higher than the European Central Bank’s target of 2.0 percent. Major economies including France, Italy, and Germany all experienced significant reduction in their inflation numbers.
Our thanks to PPS Investments for this Market overview.
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