Developed market equities continued to perform well in November buoyed by the potential for progress on a trade deal, while central banks have largely been on the side-lines. Protests continued in Hong-Kong which raised concerns regarding the protests’ possible effect on US-China trade negotiations. South Africa once again managed to avoid a Moody’s downgrade (although they did change the outlook from stable to negative) which saw the Rand strengthen against most major currencies in for the month.
The JSE All Share Index (down 1.8%) struggled in November as the large, Rand-hedge shares were hurt by the strengthening Rand. Industrial stocks (down 2.6%) underperformed the most followed by Financials (down 1.5%) and Resources (down 0.9%). Mid-cap shares (up 0.6%) outperformed this month while both Large-cap (down 2.0%) and Small-cap (down 1.2%) stocks declined.
The MSCI World Index ended the month up 2.8% in US Dollar terms. Emerging Market equities underperformed their Developed market peers and ended the month down 0.1% despite a risk-on trade which saw developed market equities perform well and bonds lag significantly.
Both the South African Listed Property sector (up 0.8%) and the SA REITs sector (up 2.6%) managed to outperform cash for the month (the only local asset classes to do so).
The Rand appreciated 2.7% against the US Dollar, 3.9% against the Euro and 2.8% against the Pound Sterling.
The US Dollar Gold price (down 3.0%) and Platinum price (down 3.5%) declined in November while the Oil price increased 3.7% in US Dollars.
