Market overview
The JSE All Share closed the week at 122 281.30 increasing by 1.79%. The biggest contributing sector was basic materials, adding 6.95% while technology decreased by 6.01% over the same period.
Looking at globally, developed markets decreased by 0.21% (USD) during the week. Emerging markets increased by 1.01% (USD) during the same period.
Local markets
South Africa’s annual inflation rate inched up to 3.6% in December 2025 from 3.5% in the prior month, in line with analysts’ expectations. The headline inflation rate remains within the 1 percentage point tolerance band of the SARB’s new 3% target. The average inflation rate for 2025 was 3.2%, marking the lowest level in 21 years and below the central bank’s 3.3% forecast.
Annual South African mining production decreased by 2.7% in November 2025, following an upwardly revised 6.1% rise in the prior month and defying market forecasts of a 3.9% advance. This was the first decline in mining activity since April last year. The biggest drags were coal, iron ore, PGMs, and gold.
Global markets
The U.S. economy increased at an upwardly revised 4.4% annualised rate, the fastest pace since the third quarter of 2023, while corporate profits were also revised higher. Robust growth was driven by firm consumer spending, a rebound in exports, and higher government outlays.
UK consumer price inflation rose to 3.4% in December 2025, up from November’s eight-month low of 3.2% and slightly above market expectations of 3.3%. This year-end acceleration, the first since July, could complicate the Bank of England’s efforts to guide inflation back toward its 2% target, though the rise is expected to be temporary thanks to government interventions.
The UK unemployment rate stood at 5.1% in the three months to November 2025, unchanged from the previous period and slightly above market expectations of 5.0%. The rate remained at its highest level since the three months to March 2021.
China’s annual industrial production advanced 5.2% in December 2025, increased from a 4.8% rise in the previous month and surpassing market expectations of 5.0%. This marked the fastest increase since September, driven by stronger growth in manufacturing activity, amid the government’s effort to boost domestic demand.
Thanks to PPS Investments for the weekly Market Overview.
Financial Indicators by Sharedata.co.za
Rand breaks through R16 to the dollar
The South African rand briefly strengthened below R16 to the dollar on Monday (26 January), with the local unit benefiting from fears over the US economy and positive local developments. See the full Businesstech article here>
SA stocks hit fresh record high, gains seen extending
Surging metal prices and a strengthening rand helped propel South Africa’s benchmark stock index to a record high on Monday, with investors expecting the rally to run further. Read the full Moneyweb article here>
Another turn for interest rate expectations in South Africa this week
According to Investec Chief Economist Annabel Bishop, markets are pricing in a 44% chance that the South African Reserve Bank (SARB) Monetary Policy Committee (MPC) will cut rates by 25 basis points on Thursday (29 January). Read the full article in Businesstech here>
Gold races to $5,100 record peak on frantic safe-haven demand
Gold prices extended their record-setting rally to surge past $5,100 on Monday as central banks and investors sought refuge from geopolitical risks and Trump-induced market volatility Read the full Reuters article here>
Oil steady amid supply worries and disruptions
Oil prices were little changed on Monday after climbing more than 2% in the previous session, as supply concerns kept a lid on benchmarks despite production disruptions in major US crude-producing regions. Read the full article on BusinessDay here>