Today’s market analysis on behalf of Daniel Wesonga, Senior Sales Manager at Pepperstone
South African stocks remain under pressure, with the JSE FTSE Top 40 Index approaching the 80,000-point psychological level. Despite a 3.1% year-on-year increase in retail sales for December, following a downwardly revised 7.6% jump in November, broader market sentiment remains cautious. Key contributors to retail growth included textiles, clothing, footwear, and leather goods, and general dealers. However, retail trade fell by 0.1% month-on-month in December, following a revised 1% rise in November. In 2024, retail sales rose 2.5% compared to 2023.
Sectors such as Energy Minerals (-8.59%), Distribution Services (-5.19%), and utilities (-2.49%) saw significant declines, which is expected to continue weighing on domestic market performance.
On the other hand, the electronic technology and consumer services sectors performed better, rising by 4.37% and 0.69%, providing some support to the market. While these sectors remain resilient, the overall outlook remains mixed due to broader economic challenges and commodity price volatility.
Furthermore, the imposition of U.S. tariffs on steel and aluminum, industries responsible for 8.5% of South Africa’s exports to the U.S. further adds pressure, particularly with the potential review of the African Growth and Opportunity Act (AGOA). These factors could weigh on South African stocks, dampening investor confidence.