South African equities started the week mostly flat, with the JSE FTSE All Share Index near the 101,000-point level.
Early trading showed mixed sectoral performance. Producer manufacturing, distribution services, and the financial sector were among the outperformers, while utilities, electronic technology, communications, and industrial services lagged.
The 30% tariffs imposed by the United States on South African exports pose a serious threat and risk harming key export industries that depend heavily on the U.S. market and could lead to job losses.
Meanwhile, the South African Reserve Bank (SARB) notes that these external pressures have slightly lowered growth forecasts but sees resilience due to trade links with Europe, China, and regional partners.
The bank stresses the need for structural reforms, alongside better electricity supply, to support recovery.
Looking ahead, the market awaits June’s manufacturing production data, due later today, expected to show improved growth following a recent rebound in industrial production. However, high unemployment, which rose to 32.9% in the first quarter, continues to weigh on consumer spending and confidence. This suggests a cautious outlook for domestic equities.
