Why November Was a Positive Month for Investors

In short, gains on the JSE reversed YTD losses.

Looking abroad, global markets ended on a positive note with global equities rallying strongly.  The reasons behind this trend as follows:

• Lower US inflation.  In October, the CPI data slowed more than expected.  Early in November, the US Federal Reserve (Fed) delivered a 0.75% rate hike, the fourth in a row.  US rates have increased by 3.75% since mid-March 2022.  Fed Chairman, Jerome Powell indicated smaller rate hikes are likely ahead.
• Decent US quarterly earnings.
• Weaker US Dollar.

In addition, the Chinese authorities indicated that they were working on gradually easing stringent COVID-19 restrictions – which indicated a possible end of the policy being in sight, and consequently an improvement in the Chinese economy.   This boosted sentiment. 

Locally, the Rand strengthened by over 6%, and both equities and bonds produced positive returns.  The South African Reserve Bank (SARB) raised rates by 0.75bps to 7.0%, retaining a hawkish tone but acknowledging that the pace and magnitude of any further rate hikes would be dependent on incoming data.

Source: Laurium Capital, Anchor Capital