Today’s market analysis on behalf of Daniel Wesonga, Senior Sales Manager at Pepperstone
17th March 2025
South African equities rebounded on Friday, with the JSE FTSE Top 40 index closing above the crucial 80,000-point level, marking a gain of just over 1%. Market breadth was positive, with over 15 of 20 sectors closing in the green. Notably, the energy minerals sector led the market, rising by 7.48%, driven by strong intraday rallies in Oando Plc, Renergen Ltd, and Effora Energy, which surged by 33.33%, 36.91%, and 33.33%, respectively. The financial sector also saw positive movement, with Firstrand Ltd, Standard Bank Group, and Capitec Bank Holdings posting gains of 1.7%, 3.28%, and 1%, respectively.
The bullish market sentiment was encouraged by the EUR 4.7 billion (USD 5.1 billion) investment pledge from the European Union to support South Africa’s green energy and vaccine production sectors. This pledge, made during the EU-South Africa summit, provides significant foreign support for the country’s transition to sustainable energy, contributing to investor confidence. This positive momentum comes as South Africa’s role as the G20 president in 2025 further attracts international attention and backing, particularly from the EU.
Meanwhile, the mining sector showed mixed results, with gold production rising by 1% year-on-year in January, ending a 14-month contraction period. Despite a 2.7% overall drop in mining output, gains in key commodities such as manganese, copper, and diamonds provide some optimism. This stability in critical resources further supports investor confidence in South Africa’s equity market.