In September, Global Equity markets (both Developed and Emerging) sell off significantly as fears around growth and the possibilities of tapering in the US as well as growth and supply constraints in China loomed. SA Equities were not spared in the sell off as falling commodity prices saw Resource stocks plumet and SA Bonds sell off as investors flock towards safe-haven assets. The South African Reserve Bank’s Monetary Policy Committee unanimously decided once again to keep the repo rate unchanged.
The JSE All Share Index (down 3.1%) contracted in September.
SA Resources (down 9.3%) was the worst performing sector while SA Financials (up 2.1%) still managed a positive return and Industrials (down 0.8%)
remained relatively flat.
Small-caps (up 5.6%) continued to outperform Mid-cap (up 0.5%) and Large-cap shares (down 3.6%).
Emerging Market Equities marginally unperformed their Developed Market peers with the MSCI World down 4.1% in US Dollar terms while the MSCI EM
lost 3.9% over the month.
Both the S&P SA REITs Index (down 1.9%) and the SA Listed Property Index (down 0.8%) were negative for the month.
SA Bonds (down 2.1%) sold off while Inflation Linked Bonds (up 0.4%) remained flat.
The Rand depreciated in September against most major currencies. Depreciating 4.0% against the US Dollar, 1.9% against the Pound Sterling and 2.1%
against the Euro.
Platinum was down 5.2% in US Dollar terms, while Gold lost 3.3%. The Brent Crude Oil price gained 7.6% in US Dollar terms.
