After strong investment market growth in 2021, 2022 started off weak. The only sectors in the United States with positive growth in the first quarter of 2022 were the Energy sector (+37.66%) and Utilities sector (+3.97%). This was due to higher commodity prices (particularly oil) and increased defensiveness on the back of tighter policy and global risk aversion.

These themes carried over into the South African market. Stronger commodity prices buoyed the Rand and general sentiment. The JSE reached a record high in March 2022 before risk appetite decreased because of global sentiment around the war in Ukraine and increasing rate hikes by major central banks.

The JSE All Share Index gained 3.84% in the first quarter. The Industrials sector (-13.88%) declined, but this was offset by gains in the Resources (+18.18%) and Financials (+20.18%) sectors. South African equities outperformed bonds and cash.