Market overview
The FTSE/JSE All Share closed last week at 95 862.25, increasing by 1.27%. The telecommunication and technology sectors were the biggest contributors increasing by 8.45% and 4.65% respectively during the previous week. The biggest detractor was the basic materials sector, which lost 2.54% over the same period.
Looking at the MSCI indices, developed markets increased by 3.30% during the previous week, while emerging markets increased by 3.35% over the same period.
SA Consumer confidence improves
The FNB/BER Consumer Confidence Index for South Africa came in at -10 in Q2 2025, rebounding from a near two-year low of -20 in the previous three-month period. While the index is still well below the historical average of -1, the latest reading suggests a modest easing in consumer pessimism.
US Economy contracts in Q1
The US economy contracted at an annualized rate of 0.5% in Q1 2025, a sharper decline than the second estimate of a 0.2% drop and the first quarterly contraction in three years. The weaker GDP figure was largely driven by significant downward revisions to consumer spending and exports. Consumer spending rose just 0.5%, the slowest pace since the sharp declines of 2020, down from 1.2% in the previous estimate.
China manufacturing improves
China’s official NBS Manufacturing PMI climbed to 49.7 in June 2025 from May’s 49.5, matching expectations while marking the third consecutive month of contraction in factory activity. It was the softest contraction in the sequence, with output rising the most in three months, supported by a trade deal with the US and Beijing’s ongoing efforts to stimulate domestic demand and bolster the sluggish economy.
Thanks to PPS Investments for the weekly Market Overview.
Financial indicators by Sharedata.co.za
Rand strengthens as South Africa’s coalition avoids collapse
The rand gained as much as 0.7% and traded 0.4% stronger against the dollar at R17.76 by 12:34 p.m. on Monday after it became apparent that neither of the GNU’s two biggest members want it to unravel. Read the full Moneyweb report here>
Markets remain bullish, while fuel prices are under pressure
The sudden attack of the US on Iran nuclear facilities last week and the almost day-to-day attacks on each other between Israel and Iran, has let to a sudden strong increase in oil prices. Since the beginning of the Israel-Iran war on June 13, 2025, the Brent oil price increased from $70 (R1 251) per barrel to $77 per barrel on June 20. Read the full IOL Business Report article here>
Major pain hitting South African households this week
South African households will be hit by significant rate hikes this week, with electricity prices leading the charge for the incoming pain. Read the full impact of the hikes in the Businesstech article here>
Gold recovers from more than one-month low on softer dollar
Gold reversed course and edged higher on Monday, supported by a weaker dollar, after hitting a more than one-month low earlier as easing US-China trade tension dampened safe-haven demand and bolstered risk appetite. Read the full BusinessDay article here>
Morning Bid: The euro’s big beautiful moment
Investors are keeping a wary eye on the progress of President Donald Trump’s “One Big Beautiful” U.S. tax-cutting and spending bill that is slowly making its way through the Senate, with signs it may not make it by Trump’s preferred July 4 deadline. Meanwhile, over on Wall Street, futures on the S&P 500 suggest another record high might be in the offing later on. Read the full Reuters article here>
Oil slips on chance of output increase from Opec+
Oil prices fell on Monday as an easing of geopolitical risks in the Middle East and the prospect of another Opec+ output hike in August improved supply expectation amid persistent uncertainty over the outlook for global demand. Read the full BusinessDay article here>