Global and local equity markets

Developed market equities (MSCI World), propelled by the 5.5% rand weakness over the quarter, outperformed both the global emerging market equities (MSCI Emerging Market) and the South African equity market (JSE Capped SWIX) in rand terms. In base currencies, all three equity markets were hard hit by the risk-off trade in September. Excluding the effect of the currency weakness, SA equities outperformed both developed and emerging market equities over the quarter. The elevated level of investment market uncertainty over the past few months can be, in part attributed to the energy crisis in Europe, China’s Evergrande contagion, global supply chain disruption (i.e. electronic chip shortages), lacklustre global economic recovery, and tightening Chinese regulation. To the extent that the Chinese regulatory changes have significantly impacted the gaming sector generally, and Tencent in particular, we experienced a meaningful ripple effect in the... Read More