By Daniel Wesonga

South African equities recorded some gains with the JSE FTSE Top 40 Index’s 0.45% closing at 79,448 points on Friday. However, the momentum may face some resistance, as sectoral performance was mixed, with 11 out of 20 sectors ending the session lower. Among top constituents, Naspers declined 1.06%, while Firstrand, Capitec Bank Holdings, and Standard Bank Group fell by 3.31%, 0.39%, and 1.96%, respectively. In contrast, shares with gold exposure outperformed, with Gold Fields gaining 3.71% amid renewed interest in safe-haven assets.

South African equities have benefited from a temporary reprieve in U.S. trade policy following President Trump’s 90-day suspension of broad-based “reciprocal” tariffs. The potential imposition of these tariffs, however, poses a significant threat to beneficiaries of the African Growth and Opportunity Act (AGOA), with South Africa’s $3.567 billion in automotive and agricultural exports at risk. While some products, primarily minerals and energy, have been exempted, the long-term outlook for AGOA remains uncertain.

In response, South Africa has intensified diplomatic efforts to reinforce trade partnerships, particularly with China, to mitigate potential fallout from U.S. protectionist measures. Recent engagements between South African and Chinese officials have emphasized the importance of coordinated responses via multilateral platforms such as the G20 and BRICS. Domestically, attention is now turning to the upcoming release of the SACCI Business Confidence Index for February and March, which will provide further insight into the local economic environment.

Wesonga is Senior Sales Manager at Pepperstone