January provided some much-needed relief to investors (after a tough 2018). As central banks globally became more dovish both local and offshore asset classes performed well (despite ongoing trade tensions between the US and China, major uncertainty surrounding
Brexit and one of the longest US government shutdowns). South African Listed Property stocks were also able to make a comeback in January. After losing more than 25% in 2018, SA Listed Property sector was the best performing local asset class in for the month.
The JSE All Share Index is up 2.8% in January. Small-cap shares (2.0%), Mid-cap shares (2.3%) and Large-cap shares (2.7%) all posted similar returns for the month.
Financial stocks (up 6.0%) were the top performers in January. Absa (14.2%) was the top performing stock in this sector after the market reacted positively to Maria Ramos’ resignation announcement. Resources (3.3%) and Industrials (0.9%) also ended the month up.
Global Equities also had a positive month (after a terrible 2018). Emerging Market equities (up 8.8% in US Dollar terms) managed to outperform their Developed Market peers (up 7.8%in US Dollar terms) as investors’ risk appetite increased. The MSCI All Country World Index ended the month up 7.9%in US Dollar terms.
South African listed property shares (up 9.2%in January) was the top performing local asset class as investors took advantage of cheap valuations after a major selloff in 2018.
The Rand appreciated against most major currencies in January. It appreciated 7.8% against the Dollar and 7.4% against the Euro and 4.7% against the Pound sterling.
The US Dollar Gold price and Platinum price ended the month up 3.2%and 3.1%respectively.
The Brent Crude Oil Price increased 15%in US Dollar terms as a result of OPEC lead supply cuts as well as US sanctions against Venezuela’s petroleum industry.
