The Johannesburg Stock Exchange has recorded its worst monthly performance in years, with the FTSE/JSE All Share Index falling by 13% in March, wiping out more than R3 trillion in market value.
The decline marks the steepest monthly drop since the 2008 global financial crisis, as escalating conflict in the Middle East continues to undermine investor confidence in emerging markets.
Mining and precious metals stocks have been hit hardest, with the sector down approximately 27% since the outbreak of the conflict. The decline has been driven by weaker gold and platinum prices, which have dragged sentiment across resource-heavy counters.
Broader market pressure has also intensified as rising oil prices fuel inflation concerns and raise the likelihood of further interest rate increases. With crude trading above $100 a barrel, losses have extended beyond mining into construction, retail, banking, and broader materials sectors.
Analysts say investors are increasingly reducing exposure to emerging markets amid heightened global uncertainty. While some market participants see selective buying opportunities following the sell-off, experts warn that a prolonged conflict combined with sustained high interest rates could trigger further downside risk for equities.