Sanlam Private Wealth, Market Commentary, 19 March 2025

Local Markets

The Top 40 index advanced 0.52% to 81,637.2 points, while the All Share index closed 0.42% higher at 88,893.1. Investors are closely watching domestic economic data, with inflation figures due today and the South African Reserve Bank`s monetary policy announcement expected on Thursday. Economists polled by Reuters anticipate that the central bank may pause its rate-cutting cycle, citing prevailing economic risks. Meanwhile, geopolitical concerns are mounting as U.S.-South Africa relations have deteriorated since Trump`s return to the White House in January. The U.S. president has cut aid to South Africa, and analysts warn that the country’s preferential trade status under the African Growth and Opportunity Act (AGOA) could be at risk, adding further uncertainty to the economic outlook.

American Markets

U.S. stocks declined on Tuesday, ending a two-session winning streak, as investors turned cautious ahead of the Federal Reserve`s policy decision and assessed the potential impact of Trump`s tariff policies. The Fed is expected to keep interest rates unchanged while releasing its updated economic projections. Meanwhile, geopolitical tensions remained in focus as the U.S. and Russia agreed to a 30-day ceasefire on energy and infrastructure targets in Ukraine, with broader peace talks set to begin immediately, according to the White House.