Today’s market analysis on behalf of Daniel Wesonga, Senior Sales Manager at Pepperstone
30th January 2025
South African equities are maintaining positive momentum, with the JSE FTSE All Share Index rising by over 1% on Wednesday, bringing its one-year performance to a 14.72% gain. The health technology, consumer durables, and industrial services sectors were key contributors, advancing by 2.54%, 1.21%, and 1.19%, respectively. The broader market saw 15 out of 20 sectors in the green, although utilities, distribution services, and consumer non-durables faced declines of 3.23%, 2.65%, and 0.64%. This broad-based strength reflects a supportive market environment, notably in key sectors.
Impala Platinum Holdings Ltd was among the top performers in the JSE FTSE Top 40, rising 5.55%, followed by Clicks Group Ltd, up 3.6% and Anglogold Ashanti Plc, up 2.67%. On the downside, Glencore Plc, Anglo American Plc, and Vodacom Group Ltd posted losses of 2.94%, 1.4%, and 1%, respectively. While the resource sector remains a strong support for the market, defensive sectors such as utilities are facing challenges.
Looking ahead, the South African market could face headwinds with Donald Trump’s return to the U.S. presidency, which may lead to reduced investment and protectionist measures. However, an anticipated 25-basis point interest rate cut from the South African Reserve Bank (SARB), may provide support.