Financial shares were the top performers in the last quarter of 2017. This out-performance was mostly as a result of the optimism surrounding the outcome of the ANC election in December where Cyril Ramaphosa was elected as the new president of the ANC. The election also saw the Rand appreciating significantly against most major currencies. A synchronised global recovery along with US tax reform resulted in positive global equity returns with emerging market equities outperforming developed market equities.
The JSE All Share Index ended quarter four up 7.4% from the previous quarter end. Financials (16.0%) were the top performers this quarter while Resource shares (4.9%) and Industrials (4.7%) also had positive quarters. SA Listed Property (up 8.3%) performed well this quarter on the back of increased optimism regarding the local political circumstances. SA Bonds (up 2.2%) also had positive returns in quarter four. SA Cash (as measured by the STEFI) was up 1.8% for the quarter. The Rand appreciated against most major currencies. It appreciated 6.9% against the Euro, 7.6% against the Pound Sterling and 8.3% against the US. Dollar for the quarter. The MSCI Emerging Markets Index (up 7.5% in US Dollar terms) outperformed the MSCI World (5.6% in US Dollar terms) over the last quarter as a result of a slightly weaker Dollar combined with higher commodity prices. Global Bonds (as measured by the Bloomberg Barclays Global Aggregate Index) returned 1.1%in US Dollar terms. Oil had yet another good quarter. The Oil Price increased 16.2% in US Dollar terms for the quarter. Gold (up 1.9% in US Dollar terms) and Platinum (up 2.6%in US Dollar terms) also had a positive last quarter.
