GTC Trendline – Fourth Quarter 2020

Market commentary

The FTSE/JSE All Share Index (ALSI) experienced a volatile 2020 as fear around the rapid spread of the coronavirus wreaked havoc on global markets. Stimulus and relief measures taken by global central banks to support the financial markets have greatly aided in the global equity market recovery. The fourth quarter saw a substantial up-tick in investor sentiment and increased risk appetite which put the US dollar under significant pressure. Over the medium term, the domestic equity market returns remain muted delivering 0.58% over the year and -1.48% over the 3 year periods to December 2020.

The South African markets posted strong performance over the final quarter of 2020 continuing their recovery from the March lows. The FTSE/JSE ALSI returned nearly 10% while the FTSE/JSE Capped Shareholder Weighted Index (SWIX) delivered 11.5% over the quarter spurred on by some notable global macro events including the US presidential election and successful vaccine developments.

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