The first quarter of 2025 was marked by resilience in local markets and volatility abroad, as geopolitical shifts continued to influence investor sentiment.

South African Market Overview

The Johannesburg Stock Exchange (JSE) demonstrated resilience in January, with the FTSE/JSE All Share Index (ALSI) delivering a 5.9% total return. This performance was primarily driven by the Resources sector, which surged nearly 28% as measured by the Resources Index (J258 Total Return), buoyed by rising gold prices.

Currency Performance: The South African rand appreciated by 2.9% against the US dollar and depreciated by 1.5% and 0.6% against the Euro and British pound respectively.

International Market Overview

United States: The U.S. stock market faced challenges, with major indices such as the S&P 500 and Nasdaq Composite experiencing declines. Investor sentiment was dampened by policy uncertainties related to President Donald Trump's return to office, particularly regarding trade tensions and tariff implementations.

Europe and Asia: European markets showed resilience, bolstered by increased government and defence spending. Asian markets, especially China's technology sector, rebounded strongly, supported by government initiatives and advancements in AI. The Hang Seng Index surged nearly 16% in the first quarter.

Commodity Markets: Gold prices reached record highs, surpassing $3,100 per ounce, driven by geopolitical instability. This surge reinforced gold's status as a safe-haven asset.

The first quarter of 2025 highlighted the impact of geopolitical events and trade policies on market performance. As markets navigate these challenges, diversification and strategic portfolio management remain essential for investors seeking to manage risks and enhance returns.