Market overview
The FTSE/JSE All Share closed last week at 102 723.50, increasing by 0.86%. The oil & gas and industrials sectors were the biggest contributors increasing by 11.07% and 2.69% respective during the previous week. The biggest detractor was the telecommunication sector, which lost 6.10% over the same period.
Looking at the MSCI indices, developed markets increased by 0.46% during the previous week, while emerging markets decreased by 0.41% over the same period.
Increase in SA inflation
South Africa’s annual inflation rate inched up to 3.5% in July 2025, marking the second consecutive monthly increase and the highest rate in ten months, matching analysts’ expectations. The key drivers of price growth were food and non-alcoholic beverages. The core inflation rate, which excludes food, non-alcoholic beverages, fuel and energy, rose to 3.0% in July 2025, up from an over four-year low of 2.9% in June.
US Rates on hold
The US Federal Reserve kept rates at 4.50% for a fifth straight meeting, in line with expectations, however, two governors dissented in favour of a cut. Policymakers observed that, while fluctuations in net exports continue to influence the data, recent indicators point to a moderation in economic activity, contrasting with earlier assessments that growth was proceeding ‘at a solid pace’.
The Fed also mentioned that the unemployment rate remains low while inflation remains somewhat elevated and uncertainty about the economic outlook persists. The Fed reinforced that additional adjustments to the interest rate will depend on incoming data, the evolving outlook, and the balance of risks. The central bank maintained a wait-and-see approach amid rising concerns that the ongoing trade war could undermine progress toward the 2% inflation target.
Thanks to PPS Investments for the weekly Market Overview
Financial indicators by Sharedata.co.za
Disaster for South Africa falls flat
The market response to the US tariff disaster that hit South Africa this month has left analysts confounded and scratching their heads, with the rand barely showing a blip. This is despite the country being hit with one of the highest trade tariffs among the United States’ trade partners and the Trump administration giving Pretoria the cold shoulder. Read the full Businesstech article here>
Bigger tax burden awaits SA residents with foreign retirement income
Retired South Africans who contributed to a foreign retirement product while working abroad in the past are facing a higher tax burden – and potentially even double taxation – from next year. See the full impact of SARS proposals in theMoneyweb article here>
10 myths about financial planning in South Africa debunked
Financial planning myths, we have all heard them. With financial literacy not being a priority in most school curricula and many people growing up without guidance from parents on how to manage money, it’s no wonder that so many South Africans find themselves learning the hard way once they start earning an income. Read the full IOL Personal Finance article here>
Oil climbs after Ukraine strikes hit Russian energy sites
Oil prices edged higher on Monday after Ukraine stepped up attacks on Russia, fanning concern Russian oil supply could be disrupted, while the expectation of a cut in US interest rates buoyed the outlook for global growth and fuel demand. Read the BusinessDay report here>
Fed pivot bolsters world stocks, China shares at highest since 2022
Chinese shares led Asia higher on Monday as investors gave a cautious welcome to the likely resumption of U.S. interest rate cuts, while hoping AI-superstar Nvidia’s results this week will help justify the sector’s stratospheric valuations. Read the full article by Investing.com here>
Dollar struggles to recover from Powell’s dovish surprise
The U.S. dollar nudged higher on Monday, but struggled to recover from a steep fall spurred by a dovish pivot from Federal Reserve Chair Jerome Powell that opened the door for a rate cut in the world’s largest economy next month. Read the Reuters article here>