Dashboard: 31 May 2022

The South African Reserve Bank raised its benchmark repo rate by 50 bps to 4.75% over the month. This is the 4th consecutive hike and the biggest in over six years due to heightened inflationary risk.

South African Markets (ZAR)

Latest value Last mo. 3 mos. 1 yr 3 yrs ann. 5 yrs ann.
JSE ALL SHARE  72094,87  -0,5%  -5,3%  6,1%  9%  6,1%
JSE Volatility Index (% increase)  23,48  -6,5%  23%  23,7%  14,7%  10,2%
ALBI  832,32  1%  -0,2%  5,6%  7,7%  8,2%
Repo Rate (% increase)  4,75%  11,8%  18,8%  35,7%  -11,1%  -7,5%

South African Market Cumulative Performance

South African Yield Curve

Offshore Markets*

Latest value Last mo. 3 mos. 1 year 3 yrs ann. 5 yrs ann.
FTSE All World Index  430,76  -0,1%  -6,4%  -8,2%  9,9%  7%
FTSE Emerging Market Index  546,27  -0,3%  -7,9%  -19,3%  2,8%  1,9%
All Share Index (Kenya)  128,75  -14,3%  -19,7%  -24,3%  -4,9%  -2,8%
All Share Index (Zambia)  6979,3  0,8%  7,8%  63%  8,4%  8,1%
All Share Index (Nigeria)  53637,14  8,1%  13,2%  39,5%  20%  12,7%
All Share Index (Mauritius)  2187,78  -4,6%  1,3%  27,7%  0,8%  1,1%
Composite Index (Ghana)  2555,14  -5,1%  -5,3%  5,5%  1,8%  5,9%

Inflation**

Latest value Last mo. 3 mos. 1 year 3 yrs ann. 5 yrs ann.
CPI (ZAR)  179,91  0,6%  1,6%  5,8%  4,3%  4,4%
CPI (Kenya)  123,12  0,8%  3,4%  7,1%  5,4%  5,1%
CPI (Zambia)  359,04  0,8%  2,3%  10,2%  16,5%  13%
CPI (Nigeria)  439,4  1,8%  3,5%  15,7%  15,3%  13,8%
CPI (Mauritius)  120,98  0,7%  2,9%  10,2%  5%  3,6%
CPI (Ghana)  156,5  5,2%  9,4%  22,7%  12,9%  11,6%

Currencies (ZAR)

Latest value Last mo. 3 mos. 1 year 3 yrs ann. 5 yrs ann.
GBP  19,72  -0,8%  -4,3%  1%  2,3%  3,1%
USD  15,63  -1,2%  1,7%  13,9%  2,3%  3,6%
EUR  16,81  0,7%  -2,7%  0%  1%  2,6%
MUR  0,36  -0,7%  2,7%  9%  -3,8%  -0,8%
KES  0,13  -2%  -0,9%  5%  -2,4%  1,1%
ZMW  0,91  -2,5%  4,8%  48,5%  -6,4%  -8,6%
GHS  2,04  -5,7%  -11,6%  -14%  -8,9%  -7,8%
NGN  0,04  -1,1%  1,9%  12,7%  -7,5%  -2,6%

African Stock Exchanges’ Cum. Performance

Rand Exchange Rate

* Indices are all reflected in their respective local currencies. FTSE Indices are quoted in USD. Data Source: Thomson Reuters
** CPI is lagged by one month

Commentary

Emerging Markets continue to struggle in 2022, with all markets considered (barring the Nigerian equity market) posting negative real returns over the past month. The Nigerian equity market returned 6.3% in real local currency terms for the month.

The South African Reserve Bank raised its benchmark repo rate by 50 bps to 4.75% over the month. This is the 4th consecutive hike and the biggest in over six years due to heightened inflationary risk.

Inflation is continuing its upward trend for all countries considered. Over 5 years, inflation rates are higher than the respective market indices (apart from South Africa), which is indicative of negative real returns.

The Rand strengthened against all currencies considered over the month, with the exception of the Euro.

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Legal Disclaimer: This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The comments in this summary are based upon QED Actuaries & Consultants’ preliminary analysis of publicly available information. The content of this document is made available on an “as is” basis, without warranty of any kind. QED Actuaries & Consultants disclaims any legal liability to any person or organization for loss or damage caused by or resulting from any reliance placed on this content. QED Actuaries & Consultants reserves all rights to the content of this document.
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