Market overview
The JSE All Share closed the week at 109 398.10 decreasing by 0.15%. The biggest contributing sector was the basic materials sector, adding 5.28% while the technology sector decreased by 5.28% during the same period.
Looking globally, developed markets decreased by 0.38% (USD) during the week. Emerging markets increased by 0.48 % (USD) during the same period.
Local events
• South Africa’s inflation rate rose to 5.0% in June, driven by higher fuel, transport and utility costs, signalling renewed pressure on the interest rate outlook.
• The SARB kept interest rates at 7.0%, citing weaker growth and improving inflation expectations, while warning that higher oil prices remain a risk.
• South Africa’s retail sales grew 2.3% in May, signalling stronger consumer spending and improving economic activity.
• Border inefficiencies are estimated to cost South Africa up to R16 billion annually, disrupting trade and weighing on economic growth.
Global events
• The ECB kept interest rates unchanged at 2.4%, while warning that elevated energy prices could continue to fuel inflation.
• UK inflation eased to 2.6% in June, reinforcing expectations of a more supportive interest rate environment as fuel and food price pressures moderated.
• Germany’s Manufacturing PMI rose to 52.2 in July, signalling stronger industrial activity and improving demand in Europe’s largest economy.
• Oil prices rose above $100 per barrel amid escalating Middle East tensions, raising concerns over inflation, slower growth and higher interest rates.
Thanks to PPS Investments for the weekly Market Overview.
Financial indicators by Sharedata.co.za
Rand and bonds tumbled after repo rate remained unchanged
The surprising decision by the Reserve Bank’s Monetary Policy Committee (MPC) to keep the repo rate at 7.0% came despite the unexpected increase in the inflation rate from 4.5% in May 2026 to 5.0% in June. See the full article in IOL Business Report here>
Interest rate hold provides relief, but oil prices pose inflation threat
The South African Reserve Bank’s (Sarb) decision to leave the repo rate unchanged at 7% has provided welcome certainty for consumers, homeowners and the commercial property sector, although economists cautioned that volatile oil prices remain the single biggest threat to South Africa’s inflation outlook. See the full MSN article here>
Oil prices sink as US-Iran pause fuels fresh Hormuz hopes
Oil prices tumbled Monday as a pause in tit-for-tat strikes between the US and Iran boosted hopes for a return to their ceasefire and negotiations on reopening the Strait of Hormuz. Read the full article in JapanToday.com here>
Fed meeting, Big Tech earnings to test jittery Wall Street
A wobbly US stock market will takes its cues in the coming week from a Federal Reserve meeting set to shed light on the path for interest rates and from a packed slate of corporate earnings led by technology companies and heavyweights in AI. Read the full BusinessDay report here>
Gold climbs as pause in Mideast fighting curbs inflation risk
Gold rose, after a pause in fighting between the US and Iran over the weekend eased oil supply risks and inflationary concerns. See the full Moneyweb article here>