For the second consecutive month, the South African stock market produced negative
returns, with the All-Share Index down 2.4% for February 2024.

The local bourse was dragged down by resources companies, more so the platinum
miners. The sector's decline was due to trading updates that indicated the negative
impact decreasing metal prices had on earnings. The few mid and small caps stocks
that produced good returns were not enough to get the market out of negative territory.

In the local economy, businesses remained under significant pressure from the ongoing
effects of load-shedding and various other structural economic issues, which weigh on
jobs and unemployment. Though GDP is expected to grow by 1.3% in 2024, from 0.6%
in 2023, it is viewed by market commentators as growing at an inadequate rate to
sustainably boost long-term employment prospects for South Africans.

South Africa's annual inflation rate rose to 5.3% YoY in January 2024, up from
December's 5.1% and compared with market forecasts of 5.4%, moving away from
the South African Reserve Bank's preferred 4.5% midpoint of the 3-6% target range.
On a monthly basis, the CPI reading had a modest increase of 0.1% in January 2024,
after being flat in the prior month.

On a slightly positive note, SA was able to assure its trading partners that the country
has the financial capacity to service its debt commitments, despite the persistent
economic pressures it is facing. This assurance came from the National Treasury's
resolution as tabled in the Budget for the fiscal year 2024/2025.

The plan is to use R500 billion from the Gold and Foreign Exchange Contingency
Reserves Account (GFECRA), to reduce the country's debt burden and associated
interest costs.

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