Sanlam Private Wealth Morning Digest 16 May 2022

Local Markets

On Friday two major indexes on the Johannesburg Stock Exchange rose. The All-share index added 2.08% and the Top-40 index closed up 2.23%. Market attention this week shifts to a monetary policy decision by the South African Reserve Bank that will be announced on Thursday. A Reuters poll published on Friday forecast the bank would make its first 50 basis point repo rate hike in more than six years, taking it to 4.75%, to prevent potential second-round effects from higher consumer prices.

American Markets

US stocks jumped Friday, trimming losses from another down week and preventing the S&P 500 from tumbling into bear market territory. All the S&P 500 sectors closed higher Friday led by gains in consumer discretionary and information technology, which added 4.1% and 3.4%, respectively. Meanwhile, Twitter shares plunged 9.7% after Elon Musk announced a standstill in the takeover deal as he awaits more details on the platform’s fake accounts. In other news, Robinhood popped 24.9% after crypto CEO Sam Bankman-Fried acquired a stake in the company.