Market overview
The JSE All Share closed the week at 120 045.80 decreasing by 1.83%. The biggest contributing sector was the communications sector, adding 6.95% while the basic materials sector decreased by 9.92% during the same period.
The week was characterised by extreme volatility with the JSE All Share breaching 126 000, before losing nearly 5% on Friday. Gold dropped close to 9% from its peak, while silver fell more than 11% at its lowest point.
The catalyst for the decline came as tech earning calls disappointed with Microsoft losing 10% on Friday. Trump’s nomination for the Fed also sparked continued concern regarding the institution’s independence.
Globally, developed markets increased by 0.50% (USD) during the week, while emerging markets increased by 1.80% (USD) during the same period.
Local highlights
* The South African Reserve Bank kept its key repo rate unchanged at 6.75% on January 29, 2026, as widely expected, after a 0.25% rate cut in November. The decision was not unanimous, with two members favouring a 25-basis-point cut. Policymakers noted that, although the inflation outlook is improving, they aim for a further drop in inflation expectations and remain watchful of potential price pressures from electricity tariffs.
* South Africa’s PPI inflation stood at 2.9% for the third month in December 2025, the highest level since July 2024, matching analysts’ estimates. The main positive contributors to the headline PPI annual inflation rate were food, beverages, and tobacco.
Global highlights
* The US Fed left the federal funds rate unchanged at the 3.5%–3.75% target range in its January 2026 meeting, in line with expectations, after three consecutive rate cuts last year that pushed borrowing costs to their lowest level since 2022.
* US producer prices rose 0.5% month-on-month in December 2025, the largest gain in three months, accelerating from a 0.2% increase in November and exceeding expectations of 0.2%. Services prices rebounded 0.5% after remaining flat in November.
* China’s official NBS Manufacturing PMI fell to 49.3 in January 2026 from 50.1 in the previous month, missing market estimates of 50. The latest reading signalled a loss of momentum in factory activity at the start of the year, as subdued demand conditions and cautious business sentiment continued to weigh amid ongoing structural headwinds.
* The Euro Area economy expanded by 1.3% year-on-year in the final quarter of 2025, marking its slowest pace in a year but easing only slightly from 1.4% in the previous quarter and exceeding market expectations of 1.2%, according to preliminary estimates.
Thanks to PP Investments for the weekly Market Overview.
Financial indicators by Sharedata.co.za
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