February saw US stocks fall after US Federal Reserve Chairman Jerome Powell suggested that rate hikes may be more aggressive than expected. Bond yields soared after this statement which sent stock markets tumbling. Locally, positive sentiment surrounding Cyril Ramaphosa’s election saw SA Inc stocks outperform while the strengthening Rand led to the large, multi-national companies’ underperformance. Both local and global property stock prices declined considerably (although the reasons for their decline differed). Global property stocks fell victim to rising global bond yields while the SA Listed Property sector’s fall could be attributed mostly to the plummet of three large shares (Resilient, Fortress Income Fund B and NEPI Rockcastle).
The FTSE/JSE All Share Index is down 2.0% for the month. Large-cap shares struggled (down 2.3%) while Small-cap (0.3%) and Mid-cap (-0.1%) stocks remained relatively flat. Resource stocks (down 4.8%) struggled the most. Industrial shares (down 3.0%) also had a tough month. Financial shares (up 2.6%) were the Top performers in February on the back of increasing positive sentiment surrounding the South African economic and political landscapes. Both Developed and Emerging Market equities struggled in February. The MSCI Emerging Market Index ended the month 4.6% down in US Dollar terms while the MSCI World Index ended the month 4.1% down in US Dollar terms. South African bonds (up 3.9%) were once again the top performing asset class this month. South African Listed Property (down 9.9%) was the worst performing asset class, with Fortress Income Fund B (-46.8%), NEPI Rockcastle (-40.4%) and Resilient (-25.9%) being the bottom performing stocks in the Top 60. The Rand appreciated 0.6% against the US Dollar, 2.7% against the Euro and 3.7% against the Pound Sterling. The US Dollar Gold Price declined 1.8% in February while the US Dollar Platinum Price declined 1.5%. The Brent Crude Oil Price ended the month 4.7% down in US Dollar terms.
