August 2023 Update
F&A Monthly Update | AUGUST 2023
We trust you are doing well. As part of our ongoing commitment to keeping you informed, we've put together a snapshot of market insights from PortfolioMetrix, providing you with an overview of where your investments are headed. Here's your August 2023 update!
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Richard and the F&A team
August 2023 Update
This month's piece is compiled by Brendan de Jongh, SA Head of Research - PortfolioMetrix.
GLOBAL UPDATE
There was an uptick in market volatility during August fuelled by increases in the yields of major sovereign bonds, continued Chinese economic weakness and an increase in natural gas prices due to the possibility of strikes at Australian liquified natural gas plants. Although they recovered towards the end of the month, both bonds and equities sold off globally.
LOCAL UPDATE
Weak markets globally provided a difficult backdrop for South African assets which have typically played a high beta role within emerging markets. The rand sold off strongly, local equities fell, and local bonds continued to struggle. Resource companies were particularly hard hit led by platinum and gold miners, however there were few hiding places within the local market. Rand weakness flattered offshore asset class performance with global bonds the best performing despite falling in hard currency.
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