August 2026 Monthly Market Summary
Global Market and Economic Summary
Global equities extended their advance in August, with the MSCI World Index gaining +2.6% and many of the world’s markets closing at new all-time highs during the month. Once again, the rally was narrowly led: technology-heavy benchmarks such as Korea, Taiwan and the Nasdaq, alongside commodity- producing markets including South Africa, Chile and Canada, were the standout performers. Emerging markets (+3.4%) outpaced developed markets, helped by a resurgence in Asian technology names, though the region’s outperformance remains reliant on a small number of markets. On a year-to-date (YTD) basis, the gap between the two remains wide: emerging markets are up +24.3% versus +13.4% for developed markets, in US dollar terms.
Global bonds slipped -0.1% over the month (-0.8% YTD) as US Treasury yields continued to push higher, pulling bond prices down. This came despite the US Treasury’s announcement that it would double the size of its planned debt buyback programme, an action intended to support long-dated bond prices that instead unsettled the market. A hawkish message from Federal Reserve Chairman Warsh at the Jackson Hole Economic Policy Symposium added to the unease, as investors pushed out the likely timing of future rate cuts. Emerging market debt (+0.3%) proved more resilient, continuing a pattern of relative stability seen in recent months.
The renewed pressure on global bond yields reflects a broader theme: with energy costs remaining elevated (Brent crude is up +48.7% YTD) and central banks reluctant to signal an imminent easing cycle, the “higher-for-longer” narrative continues to dominate fixed income markets, even as equity markets seem to largely look past these concerns.
South African Market Update
South African equities had their best month since February, with the FTSE/JSE All Share Index rising +4.6% in August and taking the YTD return to +2.8%. As has been the case for much of 2026, the headline figure disguised a large dispersion beneath the surface. The Resources sector surged +24.5% over the month as a sharp rally in gold and platinum group metal (PGM) prices (gold spot +13.3%, platinum spot +15.9% in ZAR) drove outsized gains across the mining sector. AngloGold Ashanti (+44.8%), Gold Fields (+37.7%), Sibanye-Stillwater (+32.9%), Thungela (+29.6%), Impala Platinum (+25.2%), Sappi (+24.4%) and Harmony Gold (+20.3%) were the standout performers, while Valterra Platinum (+15.7%), Anglo American (+9.7%) and BHP (+8.5%) also participated in the rally.
Industrials (-5.6%) continued their weak run, leaving the sector down -9.1% YTD, while Financials (-1.2%) also weakened, although the index remains positive on a YTD basis (+7.7%). Index heavyweights British American Tobacco (-11.1%), AB InBev (-10.1%), Clicks (-10.0%) and Naspers (-9.1%) led the declines, followed by Woolworths (-8.2%), MTN (-7.8%) and Pepkor (-7.4%). Spar (-20.4%) was the single worst performer on the local market, extending a torrid year for the retailer (-59.1% YTD). The divergence between Resources and the rest of the market highlights just how concentrated August’s gains were.
South African bonds continued to outperform their global counterparts, with the All Bond Index returning +0.7% in August (+3.5% YTD), even as global yields moved higher. The move was, however, less a broad rally than a story of relative value: after an initial rally in the first week of the month, yields ended August broadly unchanged from where they started. Listed property (-3.8%) was the weakest local asset class, with index heavyweights Growthpoint (-7.2%) and Redefine (-6.1%) among the worst performers.