Johannesburg — South African equities are set for further upside, extending gains from Tuesday’s rally, with the JSE FTSE Top 40 Index rising 0.68% to 83,976.98 points.
The advance occurred despite a mixed sectoral backdrop. Electronic technology led with a 3.63% gain, followed by communications (+2.69%) and energy minerals (+2.23%). In contrast, distribution services (-2.42%), commercial services (-1.23%), and technology services (-1.18%) lagged.
Performance among key constituents was broadly positive, particularly in the financial sector. Firstrand rose 2.43%, Investec gained 2.19%, and Capitec Bank Holdings added 0.90%. However, Naspers fell 1.32%, reflecting selective weakness among blue chips.
Market sentiment continues to respond to heightened trade uncertainty following U.S. tariff escalations and the pending expiration of the African Growth and Opportunity Act (AGOA). These developments have renewed urgency around South Africa’s need for a diversified export strategy and the pursuit of bilateral trade agreements beyond its traditional partners.
The release of South Africa’s March trade data will be closely watched. A continued trade surplus, driven by robust vehicle, precious metals, and machinery exports, would likely support equity valuations, particularly among export-oriented sectors.
Conversely, signs of softening external demand or narrowing trade balances could weigh on risk appetite. Given the trade-dependent nature of the economy, the data will be key in determining expectations for earnings momentum, investment inflows, and broader equity market performance going forward.
