Global and Local Markets – 2nd Quarter June 2021

Developed markets equities outperformed both the global emerging market equities and the South African equity market over the recent quarter. Within developed markets, US stocks gained the most followed by Europe, UK and Hong Kong with slightly negative returns from Japanese equities. Strong vaccination programmes have aided in the upward trajectory of developed markets over the quarter. Going forward, investors will keep a keen eye on the spread of the delta variant and its potential economic ramifications.

On the local front, the surge in the Delta variant related Covid cases has resulted in stricter lockdown measures being imposed to contain the spread of the virus. While needed to reduce the mortality rate, it comes at great cost to the already fragile South African economy.

In the local market, resources pulled back sharply over the quarter, while financials and industrials were positive. The overall equity market was mostly flat for the 3 months to June.