By Daniel Wesonga

The South African stock market staged a robust rebound on Thursday, with the JSE FTSE Top 40 Index advancing 4.49% to close at 79,091 points. Gains were broad-based across sectors, led by Electronic Technology, which climbed 10.55%. Non-Energy Minerals rose 6.43%, and Process Industries added 4.82%. The only sector to close in negative territory was Producer Manufacturing, down 1.41%. Among notable constituents, Gold Fields Ltd posted a strong performance, up 9.31%, while Naspers gained just over 2%. The financial sector also contributed meaningfully to the rally, with Firstrand closing 4% higher and Capitec Bank Holdings, Standard Bank Group, and Investec all recording gains.

The market rally followed the U.S.’ suspension of reciprocal tariffs on several African countries, including South Africa. The move alleviated concerns over immediate disruptions to key export sectors. South Africa’s citrus industry, previously facing tariffs of 30%, will now be subject to a reduced 10% rate. The pause could provide some temporary relief to various sectors.

Looking forward, market focus is shifting to the forthcoming SACCI Business Confidence Index reports for February and March. The index dipped marginally to 120 in January from 121 in December 2024, which marked the highest level since February 2015. The moderation was attributed to weaker export volumes. However, increases in imports, vehicle sales, and tourism supported sentiment. Trade Minister Parks Tau confirmed that South Africa is actively engaging U.S. counterparts to revise trade and investment frameworks, particularly considering uncertainty surrounding the African Growth and Opportunity Act (AGOA), which is set to expire in September. These developments, alongside the easing of tariff-related risks, have contributed to the positive momentum in domestic equities.

Wesonga is Senior Sales Manager at Pepperstone