Local asset classes all managed to deliver positive returns in April. The South African Reserve bank continued their hawkish tone in their biannual monetary policy review which, along with local economic data that was in line with expectations, saw local financial stocks as well as some of the local retailers perform well. Resource stocks, on the other hand, have not been able to continue their run from the first quarter and the sector posted negative returns in April. Global risk assets continued to rally in April, driven by accommodative central banks, expectation of a Chinese growth recovery as well as markets’ decreasing concerns of a full-on trade war.
The JSE All Share Index is up 4.2% in April (its fifth positive month in a row). Small-cap shares (4.8%), Mid-cap shares (2.6%) and Large-cap shares (4.6%) all posted positive returns for the month. Financial stocks (up 6.6%) managed to recover slightly in April after a tough first quarter. Industrials (up 6.6%) also performed. Resource stocks, however, were not able to continue their quarter one rally of quarter one and ended the month down 2.0%.
Global Equities also had another positive month. Developed Market equities outperformed their Emerging Market peers once again as the Dollar continued to strengthen. The MSCI World ended the month up 3.6% in US Dollar terms while the MSCI Emerging Markets Index returned 2.1% in US Dollars.
South African listed property (up 3.2%) managed to recover some of its quarter one losses thanks to attractive valuations (although this sector continues to face some headwinds). SA Bonds (+0.8%) remained relatively flat.
The Rand remained relatively flat against most major currencies in April. It appreciated 0.6% against the Dollar, 0.5% against the Pound Sterling and 0.8% against the Euro.
The US Dollar Gold price decreased slightly (by 0.8%) in April while the US Dollar Platinum price (up 4.6%) managed to increase. The Brent Crude Oil Price increased another 6.4% in US Dollar terms in April.
