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China Market Commentary: March 2022

Here are this month’s highlights: Domestically, a resurgence of COVID-19 cases has led to local lockdowns in multiple cities including Shanghai and Shenzhen. Although volatility may persist in the near term, we remain constructive on Chinese equities given the cheap valuations and strong policy support.

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Market Commentary: February 2022

Global Market Themes: Heightened tension, volatile markets as Russia invades Ukraine European equities largely lower, UK boosted by oil giants Sanctions and threats, frozen asset-holdings hit Russia and its political elite Risk aversion weighs on Emerging Markets (EM) Commodity-rich EM buoyed by higher oil and metal prices SA Market Themes: South African equities post solid gains, as resources surge Higher oil prices put consumers under pressure, and inflation ticks higher Cyril Ramaphosa’s State of the Nation Address delivers few surprises, muted response Budget 2022 – Godongwana’s tough love stance

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China Market Commentary: February 2022

Here are this month’s highlights: The MSCI China A Onshore index fell by 8.8% and the MSCI China index had a 3% decline. There are very few fund managers operating in the smaller companies’ space despite the vast investment opportunity.

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Market Commentary: January 2022

Global Market Themes: Global equities largely lower, roiled by escalating Russia-Ukraine tensions, inflationary fears and hawkish central banks Highly volatile US equities lose more than 5%, entering correction territory UK, European equities buck the trend, ending in the green Chinese equities continue to lose ground, against the backdrop of slowing growth and regulatory hurdles Emerging Markets (EM) end January lower, but outperform Developed Markets (DM) Oil and gas prices rally, industrial resources post stellar returns SA Market Themes: South African equities buck the trend, ending in positive territory Resources and Financials post over 3% Consumer Price Index (CPI) ticks higher South African Reserve Bank announces hike in the repo rate, meeting expectations South Africans reel from sharp increases in oil prices, Rand battles back from December doldrums

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Market Commentary: December 2021

Global Market Themes: Mounting Omicron cases in Europe, United States (US) despite highly vaccinated population Developed Market (DM) equities stage a recovery and end the year with double-digit gains Chinese equities slump, Chinese and US regulators remain at odds Major Emerging Markets (EM) rally, but still end the year 2.5% lower SA Market Themes: Global peers recognise prematurity of bans, ease restrictions Economic data paints a rather gloomy picture South African equities tick higher, Financials lead the way Precious metals and Industrial metals post solid gains, lifting miners Local inflation hedges – listed property and Inflation-Linked bonds – post solid gains Rand shows modest improvement against major currency pairs

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China Market Commentary: December 2021

Here are this month’s highlights: For December, the MSCI China index was down 3.2% and the MSCI China A Onshore index was up 0.7%. Offshore listed companies in Hong Kong and US ADRs fell indiscriminately. By contrast, onshore China A shares delivered stronger returns on the back of many sectors doing well.

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