Global markets were volatile over the past month on the back of Eurozone jitters caused by instability within Cyprus' banking system and a political impasse in Italy. The US and China posted lackluster manufacturing numbers leading to further concerns regarding the global economy's recovery. Fears around currency wars also arose, fuelled by Japan's forthcoming central bank board meeting which had investors questioning whether the monetary easing policy will be more aggressive than markets have priced in.
The MSCI World gained 2.10% as US markets climbed to new highs, while the MSCI Emerging Markets Index fell 2.09% as investors switched from EM equities to bonds on the back of news about the Eurozone crisis and weak PMI data from China. US markets posted an average gain of 3.5% while the Nikkei continued its rally with a further 6.72%. European markets were also slightly positive over the month.
On the local front, the All Share Index gained 1.19% as financials and industrials both delivered over 3.10% each, while resources declined 2.64%. Pharmaceuticals were the best performing sector, while construction, industrial metals, mining and mobile telecom stocks registered losses.
The rand experienced a slight weakening of 2.07% against the US dollar to close at R9.22, while remaining flat over the month against the Euro.
Within domestic fixed interest assets the All Bond Index gained 0.24% in March, lagging the cash return of 0.43%. Cash remained at multi-decade lows as the Reserve Bank kept interest rates steady in March. The Inflation-Linked Bond Index gained 1.57% as inflation is expected to increase further after leaping to 5.9% in February. Listed property had another exceptional month, up 3.3% in March and 9.1% over the quarter.