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Tighter financial conditions, slow growth and high policy uncertainty should weigh on valuations, profit margins and earnings.

The South African medium-term budget during October received a positive reaction from markets. This was mainly due to expected strong revenue over runs along with fiscal discipline.

The last quarter of the year saw global equity markets fall in December, but still managed to end the quarter in positive territory.

Last month, global equities jumped 6.8%, with US equities underperforming ex-US equities.

Tight financial conditions, higher cost of living and production and increased policy uncertainty should weigh on valuations, earnings, and the risk premium.

During the third quarter of 2022, South Africa experienced a record length of consecutive loadshedding.

Global equities were down -9.5% for September, with US equities down -9.4% and ex-US equities down -9.6%.

Tight financial conditions, higher cost of living and production and increased policy uncertainty should weigh on valuations, earnings, and the risk premium.

Markets rebounded in July after it experienced the worst first 6 months in almost 50 years.

The second quarter of 2022 was highlighted by a decrease in South African investor confidence due to ongoing loadshedding, labour strikes and increasing fuel prices.

Tight financial conditions, higher cost of living and production and increased policy uncertainty should weigh on valuations, earnings and the risk premium.

The earnings growth outlook has deteriorated. Rising bond yields, energy prices and supply disruptions will keep volatility elevated.