STOCKS | South Africa's Benchmark Index Faces Worst Month in Two Decades Amid Dual Crises

South Africa's benchmark stock index is experiencing its worst monthly performance in nearly two decades, according to Jin10. The dual impact of the Iran conflict has weakened demand for emerging market assets, while a sharp decline in precious metal prices has pressured the country's mining stocks. As of the close on March 27, the FTSE/JSE All Share Index has fallen 13% this month, marking the steepest drop since the peak of the global financial crisis in September 2008. Previously, the index had recorded 12 consecutive months of gains until February, setting a historic record for the longest streak of increases. The current situation represents a dramatic reversal. The precious metals and mining sector, which accounts for a quarter of the index's weight, has plummeted 27% since the onset of the Middle East conflict, erasing all gains made earlier this year as gold and platinum prices decline. Meanwhile, emerging market stocks have faced widespread sell-offs, with investors concerned that soaring oil prices will drive inflation higher, forcing central banks to raise interest rates. SBG Securities analysts Deanne Gordon and Adele Fermoyle noted in a report that profit-taking in precious metals counters due to risk aversion has amplified the impact on South Africa's stock market.