GTC Trendline – Fourth Quarter 2021
Overview
The local equity market, as represented by the Capped Swix Index (+8.7%), rallied significantly over the quarter to outperform both developed (+7.8%) and emerging markets (-1.3%) in base currencies. This was driven primarily by strong performances from Resources (+22.2%) and Industrials (+16.1%).
Listed property returned a healthy 8.4% over the quarter, primarily driven by December’s 7.9% rally. While admittedly coming off a low base, the sector earned an excellent 36.9% for the year ending 2021 which contributed to the 27.1% return delivered by the local equity market over the same period.
The July unrest contributed to the disappointing Q3 2021 GDP growth of +2.9% as the impact to the economy was larger than expected.
After a weak November, global developed equity markets bounced back strongly in December, to finish the quarter up 7.8% and the year up 21.8% in dollar terms. The weaker global emerging market sentiment detracted from the overall emerging market performance, resulting in a negative 1.3% and negative 2.5% return over the quarter and year respectively.
