Market Summary
The JSE All Share closed the week at 111 507.30 increasing by 1.19%. The biggest contributing sector was the basic materials sector, adding 3.47% while the oil & gas sector decreased by 2.01% during the same period.
Looking globally, developed markets increased by 2.09% (USD) during the week. Emerging markets increased by 1.02% (USD) during the same period.
Local events
• South Africa recorded a trade deficit of R1.8 billion in May, as weaker exports and rising imports highlighted pressure on the country’s external position and economic growth outlook.
• South Africa recorded a government budget deficit of R14.6 billion in May, highlighting ongoing fiscal pressures and the importance of prudent public finance management.
• South Africa’s Absa PMI fell to 47.3 in June, signalling renewed contraction in manufacturing activity as weaker demand weighed on new orders and production.
• South Africa’s one year inflation expectations increased to 4.2% in Q2, the highest in a year, indicating growing concerns about future price pressures despite easing fuel costs.
Global events
• Eurozone inflation slowed to 2.8% in June, below expectations and its lowest level since February, reinforcing signs of easing price pressures across the region.
• The US economy added 57 000 jobs in June, well below expectations and the weakest increase in four months, signalling a moderation in labour market strength and economic momentum.
• China’s Manufacturing PMI eased slightly to 51.7 in June but remained in expansionary territory, signalling resilient industrial activity and continued support for global commodity demand.
• Federal Reserve Chair Kevin Warsh reaffirmed the Fed’s commitment to returning inflation to its 2% target, signalling that interest rates may remain elevated as policymakers continue to prioritise price stability.
Thanks to PPS Investments for the weekly Market Summary.
6 Month Review by Ninety One
And in the blink of an eye, we have passed the halfway mark of 2026!
The second quarter was dominated by an extraordinary surge in risk appetite, as semiconductor stocks powered one of the largest increases in global equity market capitalisation on record. Yet beneath the exuberance, markets underwent significant macroeconomic shifts: oil prices collapsed, the Fed turned more hawkish, the US dollar rebounded and China’s strengthening renminbi signalled an important policy shift with global implications.
The MSCI World Index added approximately US$8 trillion in market capitalisation this year, exceeding even the scale of the post-COVID recovery. Almost all of these gains were driven by semiconductor stocks, which now account for 19% of the S&P 500 and 14% of the MSCI World Index. A special mention must also go to SpaceX, which raised US$85 billion in the largest IPO the world has ever seen and now commands a market capitalisation of US$2.1 trillion. While investor enthusiasm has been remarkable, the company reported losses of US$4.9 billion in 2025 and a further US$4.28 billion in the first quarter of 2026.
Turning to South Africa and the JSE, which rewarded investors with a 42% gain in 2025, the first half of 2026 has proved more challenging, with the index down -3%. One standout has been the resilience of the rand, which has remained firm and relatively range-bound against the US dollar despite heightened global volatility.
Financial Indicators by Sharedata.co.za
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Retirement funds are stronger, but members still risk reaching old age without enough help
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Oil swings as Hormuz flows persist and OPEC+ flags higher supply
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Global markets mixed as AI sector results loom
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S&P 500, Nasdaq futures rise as chip shares rebound
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