April local commentary: The JSE has a strong month buoyed by gold and platinum miners

April local commentary

The JSE had a strong month in April (FTSE/JSE Capped SWIX Index +3.4% MoM), leaving it amongst the best-performing emerging market (EM) bourses YTD (+6%), although the currency headwind (-2.7% MoM and -6.9% YTD) pushes it to the bottom of the list YTD when measured in US dollar terms. Around 35% of the JSE’s April performance came from the gold miners (+17% MoM), making this grouping the best-performing industry on the JSE for the second consecutive month (+41% MoM in March) despite an April gold price rally of only 1.1% MoM (in US dollar terms). Platinum miners (+12% MoM) were also buoyed by metal prices (platinum +8% MoM), while the star performer in the sector was Northam (+24% MoM) as it announced its withdrawal from the bidding war for Royal Bafokeng Platinum (RBPlat). Diversified miners followed industrial metal prices lower in April (BHP -5% MoM, Anglo American -4% MoM). Investment conglomerates Naspers and Prosus weighed on the JSE’s performance (-1% MoM in aggregate), despite outperforming their largest investment, Chinese tech conglomerate Tencent (-8% MoM in rand terms).

Despite continued signs of domestic economic strain (SA retail sales fell for the third consecutive month, and local inflation ticked higher – headline CPI +7.1% YoY in March), JSE-listed corporates geared towards the domestic economy fared well in April (+2.4% MoM). Some of the best-performing, domestically oriented shares were also amongst the largest (FirstRand and Sanlam both +7% MoM). Shares with predominantly non-SA earnings benefited from the tailwind of a weaker local currency, with British American Tobacco (+7% MoM) and Richemont (+6% MoM) amongst the best-performing counters in this category in April.

South African 10-year government bond yields drifted higher in April, ending the month at 11.4%, the highest level since late 2022 when the prospect of impeachment of President Cyril Ramaphosa (over the events surrounding the theft of foreign currency from his Phala Phala game farm) rattled foreign investors. The drift higher in local bond yields came despite a generally benign environment for global bond yields in April.

At Anchor, our clients come first. Our dedicated Anchor team of investment professionals are experts in devising investment strategies and generating financial wealth for our clients by offering a broad range of local and global investment solutions and structures to build your financial portfolio. These investment solutions also include asset management, access to hedge fundspersonal share portfoliosunit trusts, and pension fund products. In addition, our skillset provides our clients with access to various local and global investment solutions. Please provide your contact details here, and one of our trusted financial advisors will contact you.

OUR LATEST NEWS AND RESEARCH

INVESTING IN YOUR NEEDS

Submit your details and we’ll give you a call back to assist and advise you on your investment.

SUBSCRIBE TO OUR NEWSLETTERS

Subscribe to our newsletters to receive regular market commentary, research and updates from the Anchor team. Select between our Individual or Financial Advisor newsletters by selecting the relevant tab below.

Insights and commentary to help you navigate markets.

Subscribe to Anchor's daily Current Co-ordinates newsletter.

Newsletter popup