Liberation Day to record highs: The hidden strength in SA equities

IN A WORLD beset by geopolitical tensions, trade disputes, and economic uncertainty, equity markets have continued to surprise on the upside. For South African investors, the post - "Liberation Day’ rally has revealed a hidden strength in local equities that defies the broader narrative of emerging market vulnerability.

- NICHOLAS DE CLERCQ

While global headlines have been dominated by tariff threats, war-driven commodity fluctuations, and the resilience of US markets, South Africa's own bourse has quietly delivered exceptional returns.

Since the 2nd of April, now dubbed “Liberation Day’, the local and global equity markets have handled the turmoil like a champ.

Despite, ongoing wars, oil price concerns and the renewed threat of steep tariffs from President Trump. The US equity market has continued to remain resilient and even rally since the last round of tariff threats.

The S&P 500 has recovered to record highs once again, with a return of about 24% since the bottom of the drop. Meanwhile, the VIX has recovered to normal levels signalling positive investor sentiment post April.

The recovery was mainly driven by rallies in the tech and industrial sectors.