By Daniel Wesonga

South African equities rebounded strongly, with the JSE FTSE Top 40 surpassing 80,000 points, reflecting positive investor sentiment. A broad rally saw 15 out of 20 sectors closing higher, led by Health Technology, non-energy minerals, and distribution services. Health Technology advanced by 10.54%, with Aspen Pharmacare and Adcock Ingram Holdings rising by 11.73% and 1.76%, respectively. The Finance sector also showed strength, with Firstrand Ltd, Capitec Bank, and Standard Bank Group gaining 2.07%, 0.29%, and 1.42%, respectively. Despite this, South Africa’s manufacturing sector faced challenges, with the Manufacturing PMI dropping to 44.7 points in February from 45.3 in January, indicating continued contraction in factory activity.

This market performance highlights the resilience of sectors like Health Technology and Finance, which are likely to continue supporting the domestic equities in the short term. However, the ongoing contraction in manufacturing and weak export performance could limit broader market growth. Export challenges, exacerbated by global demand and logistical disruptions, could weigh on investor sentiment, notably in export-dependent sectors.

Meanwhile, the approval of the Medium-Term Development Plan (MTDP) by the African National Congress could drive long-term growth. The plan, which emphasizes industrialization and diversification, aims to address unemployment and stimulate key sectors such as mining, manufacturing, and agriculture.

Wesonga is Senior Sales Manager at Pepperstone