Market Overview
The FTSE/JSE All Share closed last week at 81 364.88, down -2.77%. The only contributors were the telecommunications and consumer staples sectors, which gained 1.63% and 0.03%, respectively, during the week. The health care and basic materials sectors were the biggest detractors, falling by 11.73% and 5.92%, respectively, over the same period.
The MSCI indices showed that developed markets fell by 3.87% last week, while emerging markets fell by 2.24%.
SA GDP growth in line with expectations
South Africa’s economy expanded by 0.4% in Q2 2024, up from a revised flat reading in the previous quarter, as the country experienced no load-shedding for the first time in years. Seven out of ten industries experienced growth, with finance, real estate, and business services leading the charge. However, net trade had a negative impact on GDP expenditure, as exports fell by 0.4% while imports increased by 1.7%. On a yearly basis, GDP increased by 0.3% in Q2.
Increase in SA business confidence
The RMB/BER business confidence index increased to 38 in Q3 2024, the highest since Q4 2022, from 35 in the previous period. The latest reading suggests increased optimism among businesses following the formation of the new coalition government and stable electricity supply. “This is the first business sentiment survey in South Africa following the formation of the Government of National Unity (GNU) and reflects cautious optimism about improving business conditions,” said RMB. “Although respondents still noted constraints, especially weak demand, they were less negative about current conditions and, encouragingly, were more upbeat about business conditions going forward.”, it added. Among the five sectors that comprise the index, wholesalers and building contractors saw a decline in confidence but are still at relatively high levels. Manufacturing remained unchanged, and retailers and new vehicle dealers saw an improvement in confidence
Thanks to PPS Investments for the Market overview.
Financial Indicators supplied by Sharedata.co.za
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