Market overview
The FTSE/JSE All Share closed last week at 109 778.10, increasing by 2.99%. The technology sector was the biggest contributor increasing by 7.15% during the previous week.
Looking at the MSCI indices, developed markets increased by 1.49% during the previous week, while emerging markets increased by 3.67% over the same period.
SA Manufacturing rebounds
South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) rose to 52.2 in September 2025, the highest since October last year, from 49.5 in August, pointing to a renewed expansion in factory activity. However, this was only the second time this year that growth was recorded. “The domestic market drove the recovery as global demand remained under pressure and is complicated by steep US tariffs, a challenging trading environment, and lingering SA port issues,” Absa stated.
The business activity and new sales orders sub-indices rose strongly, reflecting the rebound in local demand. Meanwhile, respondents noted slower deliveries, caused by logistical obstacles such as export paperwork delays. The measure of expected business conditions six months ahead, fell sharply reflecting growing uncertainty about the near-term outlook due to global headwinds.
US Government shuts down
The US government shut down on 1 October 2025 after the US Congress failed to pass a funding bill for the new fiscal year. The deadlock stemmed from disagreements, primarily over the healthcare policy, with Democrats demanding the extension of Affordable Care Act subsidies and reversal of Medicaid cuts, while Republicans pushed for a funding bill without these provisions.
The shutdown could delay key economic data releases, complicating the Fed’s interest rate decisions. While markets remain stable for now, prolonged disruptions may dampen their GDP growth and consumer spending, especially if furloughs persist.
Silver lining for Chinese manufacturers
China’s official NBS Manufacturing PMI rose to 49.8 in September 2025 from 49.4 in the previous month, topping market forecasts of 49.7. While factory activity contracted for the sixth straight month, the pace of decline was the slowest in the sequence, as manufacturers anticipated additional policy support from the government to boost domestic demand, ahead of the October plenum and clearer signals on a U.S. trade agreement.
Thanks to PPS Investments for the weekly Market Overview.
Financial indicators by Sharedata.co.za
One of the biggest bullish markets during September is likely to continue
South African financial markets had one of their most positive months since Covid last month. The uncertainty in the US due to surging inflation against unemployment that remain under pressure not only boosted precious metal prices, the Rand and bonds, but also increased the expectations of another US rate with the expected US non-farm payrolls that was to be published on Friday. Read the full IOL Business Report article here>
Tax warning for any South Africans moving abroad
South Africa’s tax base continues to increase, but many South Africans living abroad are at risk of being taxed by two different authorities. Read the full Businesstech article here>
Safe-haven demand pushes gold past $3,900 for first time
Gold surged past the $3,900/oz level for the first time on Monday, driven by safe-haven demand following a fall in the yen, the US government shutdown and the growing expectations of additional Federal Reserve rate cuts. Read the full article on BusinessDay here>
Fed set to drive global rate cuts as Europe shifts to pause
The Federal Reserve and global peers appear set to keep cutting interest rates in the remainder of this year, carrying on where much of Europe has left off. Read the comprehensivive analysis on Moneyweb.co.za here>
Morning Bid: Political jolts from Tokyo and Paris
As U.S. markets mull the lengthening government shutdown, the week started with political drama in Japan and France – with the yen and euro falling sharply against the dollar and both gold and the euro/yen exchange rate vaulting to all-time highs. Read the full Reuters article here>
Magnificent Seven surpass EU GDP: Is this a tech bubble warning?
The combined market value of the US ‘Magnificent Seven’ tech giants has surpassed the EU’s GDP, raising concerns of a tech bubble. While valuations are high, comparisons to the dot-com era suggest this may be a structural shift. Read the full article on Euronews.com here>