By Daniel Wesonga

South African equities continue to face pressure, with the JSE FTSE Top 40 Index dropping below the 80,000 support level. Market sentiment turned negative, as only 5 of 20 sectors closed positively on Friday. Consumer non-durables, consumer durables, and transportation showed resilience, while electronic technology, technology services, and utilities ended lower by -8.48%, -2.65%, and -2.52%, respectively. Major stocks such as Naspers, Firstrand, and Capitec Bank closed down by -3.73%, -1.22%, and -1.30%. This weakness reflects concerns over South Africa’s economic outlook, with sluggish growth expected to continue.

The potential repeal of the African Growth and Opportunity Act (AGOA) under the Trump administration poses risks, particularly for the automotive and agricultural sectors. Losing AGOA benefits could disrupt trade, reduce foreign investment, and add volatility to the domestic market.

Focus now shifts to economic data, including February Manufacturing PMI and GDP Q4 2024 figures. January’s Absa PMI recorded a value of 45.3 points in January, marking its third consecutive contraction, while GDP grew only 0.3% in Q3 2024, highlighting ongoing economic challenges.

Wesonga is Senior Sales Manager at Pepperstone