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South African equities slid as the JSE All Share Index dropped below the 98,000-point threshold, weighed down by broad-based weakness across the market.
15 of the 20 sectors were in negative territory, with electronic technology, consumer durables and industrial services among the worst performers.
Only a handful of sectors, producer manufacturing, consumer non-durables and non-energy minerals, managed to post gains.
The widespread decline reflects growing investor caution in the face of mounting economic uncertainties, raising concerns over sustained capital outflows and downward pressure on equity valuations.
Despite the Manufacturing PMI rising to 50.8 points in July, indicating a modest return to expansion, market sentiment remained subdued. The South African Reserve Bank’s decision to shift inflation targeting towards the lower bound of its 3–6% range, setting a new focus on 3%, could constrain the scope for further monetary easing, affecting stock market performance.
Furthermore, the Reserve Bank also downgraded its 2025 GDP forecast against a backdrop of ongoing structural bottlenecks and U.S. tariffs. Structural reforms remain central to the economic outlook, but logistical inefficiencies and subdued confidence continue to hamper momentum.
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