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Market Review - June 2020

Our last market update covered the performance of markets for the year to the end of May 2020. This month we will cover the month of June and cumulative performance YTD. At that point markets had staged a rather remarkable recovery and were just off the highs we saw earlier in the year pre-COVID.


Source: Morningstar

The market for the most part has continued this trend and has remained very responsive to the stimulus measures and the prospects of economies around the world re-opening. The fear around second waves of infection or the long-term impact this crisis is likely to have on global economies seems to be waning.


Local Market Performance (ZAR R Denominated)


Source: Morningstar

The local listed property market has bounced significantly over the past two months and continued this trend in June, although it is still 37% down YTD. This sector appears to be pricing in far more negativity than the equity market locally and abroad.


Global Market Performance (ZAR R Denominated)


Source: Morningstar

Safe-haven assets have been less sought after in this risk-on environment and have sold off slightly with Gold and Bonds on aggregate giving back a little of their performance for the year. Oil has continued to recover from its lows but the volatility around this commodity and its associated industries is likely to remain for the remainder of the year.


Global Commodity Performance (ZAR R Denominated)


Source: Morningstar

The charts and tables above give a visual representation of the performance of the major asset classes over the period discussed.


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SAM - Market Newsletter (June 2020)pdf

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