Market Overview
The global developed equity market, sold off some -5.2% in USD over the quarter while emerging markets retracted nearly -7% over the same period. The negative returns from these equity markets can be in part attributed to the more hawkish stance of central banks and their concerns of deepening inflation, Russia’s invasion of Ukraine, widespread sanction against Russia, the energy crisis in Europe, and overall sluggish global economic growth. Brent crude oil came under significant pressure over the quarter, rising well over $130/barrel before retreating to close the quarter at $108/barrel. The local equity market (+6.7%) outperformed both developed and emerging markets in both base currency and rand terms over the quarter. This performance was primarily driven by the strong rally in Financials (+20.2%) and Resources (+18.2%). Local banks reported relatively robust balance sheets and stronger than expected earnings. Industrials... Read More
