Market overview
The JSE All Share closed the week at 113 215.90 decreasing by 1.16%. The biggest contributing sector was the financials sector, adding 1.90% while the basic materials sector decreased by 4.37% during the same period.
Looking globally, developed markets increased by 1.30% (USD) during the week. Emerging markets increased by 1.11% (USD) during the same period
Local events
• South Africa’s inflation rose to 4.0% in April, the highest since August 2024, driven by higher electricity tariffs and fuel prices, while core inflation rose to 3.6%.
• Moody’s upgraded South Africa’s credit outlook to positive from stable, while maintaining its Ba2 rating, citing improved fiscal performance and reform progress supporting debt stabilisation.
• South Africa’s municipal debt to Eskom has reached around R11bn, with stalled reforms and metro non payment increasing risks to power supply and economic activity.
• South Africa’s retail sales grew 2.6% year on year in March, supported by stronger activity in general dealers and durable goods, indicating moderate consumer resilience.
Global events
• Germany’s manufacturing PMI fell to 49.9 in May, signalling contraction as weaker demand and rising costs weighed on activity.
• US consumer sentiment fell to a record low of 44.8 in May, as rising fuel costs linked to the Iran war increased cost of living pressures and weakened household confidence.
• Germany’s Ifo Business Climate Index rose to 84.9 in May from 84.5, but remained weak, reflecting fragile economic conditions.
• Oil prices remained elevated above $110 per barrel as ongoing disruptions in the Strait of Hormuz and prolonged Iran war risks tightened global energy supply, increasing inflation pressures globally.
Thanks to PPS Investments for the weekly Market Overview.
Financial Indcators by Sharedata.co.za
Good news for the rand
The rand has started the week on a stronger footing against major currencies, but the news is bittersweet, as it comes amid market expectations of interest rate hikes on Thursday. Read the latest developments on Businesstech here>
No further fuel levy relief, as Treasury rebalances books
Finance Minister Enoch Godongwana says National Treasury will soon begin balancing the books to make up for government’s intervention on fuel prices after the war in the Middle East piled pressure on South African consumers and industries. Read the full Moneyweb article here>
South Africa’s evolving stance on crypto asset regulation
South Africa’s debate over crypto asset regulation is entering a more practical phase, with National Treasury and the South African Reserve Bank (SARB) signalling a shift towards clearer rules for cross-border digital asset activity rather than restrictions on ownership itself. Read the latest updates on IOL Business Report here>
Oil Could Stay Above $100 for Years, Analysts Warn
Oil prices opened trade this week with a decline on reports that a deal between the U.S. and Iran was imminent. Brent crude slipped below $100 for the first time in days. But then President Trump there was no rush on a deal and the U.S blockade in Hormuz would remain. While traders scratch their heads, analysts are warning that crude could remain well above $100 per barrel for years. This is literally uncharted territory for oil. Read the full commentary on Oilprice.com here>
European stocks falter, oil rises, as US strikes Iran
European stock indexes were mixed on Tuesday, pulling back slightly from recent gains, and oil prices rose after new U.S. strikes in southern Iran dampened investors’ hopes that a U.S.-Iran peace deal could be imminent. See the laters report from Reuters here>