South African equities managed a fourth consecutive month of positive returns in March (to end the first quarter of 2019 up 8.0% from the previous quarter end). The South African Reserve Bank’s Monetary Policy Committee (MPC) met at the end of March and took a unanimous decision to keep the repo rate unchanged at 6.75%. Global Equity markets also had a great start to the year with Emerging Market equities continuing to lag their Developed Market peers.
Small-cap shares (down 3.4%) struggled over the quarter while Mid-cap shares (2.8%) and Large-cap shares (8.5%) performed well. Resource stocks (up 17.8%) lead the charge in quarter one with the top 5 performing stocks in the Top 60 (all returning more than 30% for the quarter) all being Resource stocks.
Industrial stocks (up 7.4%) also performed well over the quarte while Financial stocks (-0.4%) struggled.
South African Listed Property was able to recover some of its 2018 losses to end the quarter up 1.5%. However, March saw the sector come under pressure once again as increasing volatility in this sector along with a tough local economic outlook discouraged investors.
Global Equities also recovered well over the quarter (after a horrific 2018). Developed Market equities outperformed their Emerging Market peers once again with the MSCI World ending the quarter up 12.6% in US Dollar terms while the MSCI Emerging Markets Index was up 10.0% in US Dollar terms The Rand had a volatile quarter, first appreciating against most major currencies in January and then depreciating again in February and March. At quarter end the Rand had depreciated 2.6% against the Pound Sterling, appreciated 1.5% against the Euro and depreciated only slightly (0.3%) against the US Dollar.
The US Dollar Oil Price (up 27.1%) increased dramatically over the quarter as global oil production fell due to Saudi led OPEC production cuts as well decreased supply in Venezuela. Both the US Dollar Gold (1.1%) and US Dollar Platinum Price (up 6.7%) also increased in quarter one.
