Market overview
The JSE All Share closed the week at 117 518.20 increasing by 5.41%. The biggest contributing sector was the basic materials sector, adding 15.88% while the oil & gas sector decreased by 2.57% during the same period.
Looking globally, developed markets increased by 3.32% (USD) during the week. Emerging markets decreased by 0.43 % (USD) during the same period.
Local events
• The Absa Manufacturing PMI fell to 46.8 in July, remaining in contractionary territory as businesses grew more cautious amid rising oil prices and weaker economic conditions.
• South Africa’s new vehicle sales rose to 57,700 units in July, reflecting stronger consumer and business demand and signalling resilience in economic activity.
• South Africa’s bond market is pricing the country closer to investment-grade status, reflecting improved investor confidence and a stronger fiscal outlook.
• PIC CEO Patrick Dlamini has been reinstated, although multiple investigations remain ongoing, keeping governance at Africa’s largest asset manager in focus.
Global events
• China’s trade surplus widened to $112.5 billion in July, driven by strong export growth, signalling resilient global demand and continued support for commodity markets.
• The US economy unexpectedly lost 23,000 jobs in July, raising concerns about slowing economic momentum and strengthening expectations that the Federal Reserve may take a more cautious approach to future interest rate decisions.
• China’s Manufacturing PMI eased to 50.9 in July, its lowest level in four months, signalling slower industrial activity in South Africa’s largest trading partner.
• Global food prices rose 0.6% in July to their highest level in more than three years, driven by supply concerns, adverse weather conditions, and disruptions to key grain export routes.
Thanks to PPS Investments for the weekly Market Overview.
Financial Indicators by Sharedata.co.za
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