South African equities appear set to extend recent gains, following a 1.10% rise in the JSE FTSE Top 40 Index on Friday, which closed at 84,383.47 points.
Market breadth was positive, with 13 of 20 sectors ending higher. The health technology sector led with a 4.17% gain, while transportation and technology services rose 2.14% and 1.79%, respectively.
The rebound was supported by improved global sentiment as earlier concerns around U.S. tariffs eased. However, losses in utilities (–2.43%) and industrial services (–2.14%) reflected continued pressures in select sectors.
Among major constituents, Naspers advanced 2.09%, Firstrand gained 1.58%, Investec added 0.71%, Standard Bank rose 0.54%, and Vodacom edged up 0.24%. On the downside, Gold Fields declined 0.23%, while MTN Group fell 0.70%. Investor focus is now on the South African Reserve Bank’s (SARB) upcoming repo rate decision. With inflation easing to 2.7%, below the SARB’s 3%–6% target range, the monetary policy stance is expected to remain unchanged in the near term, providing a degree of stability to the equity market.
Attention also turns to Q1 2025 labour market data, following a decline in the unemployment rate to 31.9% in Q4 2024, the lowest since Q3 2023. Job gains in finance (+232,000) and manufacturing (+41,000) supported this improvement. Looking ahead, sustained employment growth would reinforce household spending and corporate earnings, offering further support to domestic equities. While global trade and structural challenges remain risks, the current environment suggests a cautiously constructive outlook for South African equities.
