Market overview
The FTSE/JSE All Share closed last week at 101 532.30, decreasing by 0.20%. The basic materials sector was the biggest contributor increasing by 6.10% during the previous week. The biggest detractor was the telecommunication sector, which lost 5.08% over the same period.
Looking at the MSCI indices, developed markets increased by 0.35% during the previous week, while emerging markets increased by 1.42% over the same period.
SA Business activity declines due to tariffs
South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) fell to 49.5 in August, down from 50.8 in the previous month, indicating that the country’s factory activity has returned to contraction. The business activity sub-index declined by 1.3 points to 45.8, partly reflecting increased competition from lower-cost imports. New sales orders dropped sharply, falling by 8.5 points to 47.4, with respondents citing the adverse impact of US tariffs on exports. At the same time, the supplier deliveries gauge dropped to 53 in August from 56.4, due to declining orders.
US Employment growth slows
US nonfarm payrolls rose by 22,000 in August 2025, significantly below an upwardly revised 79,000 in July and market expectations of 75,000, underscoring signs of a cooling labour market. Payroll figures for June were revised down by 27,000, while the change for July was revised up by 6,000. With these revisions, combined employment for June and July is 21,000 lower than previously reported. The US unemployment rate increased to 4.3% in August 2025 from 4.2% in the previous month, in line with market expectations and marking the highest level of joblessness since October 2021. The data has all but confirmed that the US Federal Reserve will cut interest rates at its next meeting.
Thanks to PPS Investments for the weekly Market Overview.
Financial Indicators by Sharedata.co.za
South African financial markets ended strong in reaction to US non-farm payrolls
The All Share index on the JSE, as well as the Rand on Friday ended stronger in reaction to the release of the US non-Farm payrolls. The All Share index recovered by 0.9% on Friday and ended the week flat with a mere 300 points lower on 101532. The index, however, is still 20.7% up for the year. Read the full article on IOL Business Report here>
South African rand steady with domestic GDP figures in focus
The South African rand was stable on Monday as markets awaited the release of local gross domestic product (GDP) figures, along with mining, manufacturing and current account data, for clues on the health of Africa’s largest economy. See the Reuters.com report here>
New Insurance Insights Reveal Storms as Top Threat to South African Enterprises
A newly released five-year insurance insights report from Standard Insurance Limited reveals a dramatic shift in South Africa’s business risk landscape: storms and other extreme weather events have overtaken theft, fire, and accidental damage as the leading cause of short-term insurance claims. This very informative article highlighting the necessity for adequate climate relate risk cover can be found on FA News here>
Gold stays close to record high on US rate-cut hopes
Gold held firm near a record high on Monday, inching closer to a key $3,600 level, bolstered by the mounting expectation of a US Federal Reserve rate cut this month after a weaker-than-expected jobs report last week. Read the latest commentary in BusinessDay here>
Oil gains as constrained output hike by OPEC+ hints at caution
Oil climbed after OPEC+ agreed to raise production once again, but did so at a modest rate, highlighting some caution from the group as the market heads into an expected surplus. Read the full Moneyweb article here>
European stocks rose on increased Fed cut hopes; French politics in spotlight
European stocks edged higher Monday after soft U.S. payrolls data ramped up bets on a September interest rate cut, although French political uncertainty is likely to limit gains. Read the full report on Investing.com here>