Daniel Wesonga

South African equities remained stable on Wednesday, with the FTSE/JSE All Share Index holding above the 99,000-point threshold. Gains in consumer services, retail trade and other sectors lent some support in early trading, while electronic technology and health technology lagged.

Focus now shifts to the South African Reserve Bank’s (SARB) interest rate decision on Thursday. Markets are pricing in a 25-basis point cut, which would mark the third reduction this year. Such a move could provide temporary relief to financially stretched households and support consumer-linked stocks.

Further clarity is also expected from the release of June’s PPI and trade data. A wider trade surplus and easing producer inflation could provide more favorable sentiment. However, the IMF’s 1% growth forecast for 2025 points to the persistent drag from structural inefficiencies in logistics, power, and state-owned enterprises.

Wesonga is Senior Sales Manager at Pepperstone