The JSE ended the year strong with a real return of 18.8% p.a. in local currency terms. The Zambian, Ghanaian and Mauritian performed even better, returning 39.4%, 32.6% and 20.5% respectively, in real local currency terms. The Nigerian market ended the year disappointingly with a negative real yield of 7.5% in local currency terms.
South African Markets (ZAR)
South African Market Cumulative Performance
South African Yield Curve
Offshore Markets*
Inflation***
Currencies (ZAR)
African Stock Exchanges’ Cum. Performance
Rand Exchange Rate
*** CPI is lagged by one month
Commentary
The JSE ended the year strong with a real return of 18.8% p.a. in local currency terms. The Zambian, Ghanaian and Mauritian performed even better, returning 39.4%, 32.6% and 20.5% respectively, in real local currency terms for the year. The Nigerian market ended the year disappointingly with a negative real yield of 7.5% in local currency terms.
The South African equity market has outperformed the bond market by 15.7% over the past year. However, over the longer-term (5 years), the bond market outperforms the equity market generating an excess return of 1.3% p.a.
South African inflation ended the year at the higher end of the South African Reserve Bank’s target range of 3-6%.
Over the year the Rand has weakened against all currencies considered with the exception of Mauritius. The Zambian Kwacha in particular performed well against the South African Rand with gains of 38.3% over the year.