The South African equity market rebounded during Q2 as the ALSI delivered a positive 4.5% return. This performance was led by large-cap shares. The Top 40 delivered 6.2% for the quarter. Mid-cap (-7.2%) and small-cap (-4.5%) shares continued to decline, detracting from overall performance.
The South African market (FTSE/JSE ALSI) continued to climb during the fourth quarter of 2017, setting a new high and reaching 61,298.60 at its peak. This increase translated into an overall 7.44% return for the quarter, of which the majority of the performance was experienced early on.
The South African equity market moved sideways during Q2 in 2017 with the ALSI delivering a negative return of -0.39%. Local fixed-income markets took severe punishment during the final month of the quarter as returns across all fixed-income instruments, apart from shorter-term bonds, were negative.
The South African economy rose by a disappointing 0.2% q/q in Q3 - well below market expectations for an increase of 0.6% q/q. This was largely due to a sharp decline in manufacturing activity (-3.2% q/q). Growth over the last year to end September 2016 rose by a modest 0.7%.