Lagos — South African stocks continue to advance, with the JSE FTSE Top 40 index rising by 1.46%. Investor sentiment remained strong, reflected by 17 out of 20 sectors closing in the green, particularly in retail, manufacturing, industrial services, health, and technology.
Major stocks such as Naspers, up 1.54%, and key financial institutions such as Firstrand (+0.59%), Standard Bank (+0.62%), and Capitec (+1.99%) contributed significantly to the market’s positive momentum. This broad-based performance suggests a favorable outlook for the South African equity market, with potential for further gains.
Inflation data contributed to the positive market momentum. South Africa’s inflation rate held at 3.2% in February, lower than the anticipated 3.3%.
These stable inflation figures alleviated concerns over rapid price increases, strengthening confidence in the overall economic environment. With the South African Reserve Bank likely to pause its rate-cutting cycle, market participants are assured of continued stability in both currency and interest rates.
Furthermore, core inflation, easing to its lowest level since December 2021, also contributed to the positive sentiment. While food and beverage inflation ticked up, transport costs continued to decline, offsetting pressures in other areas.
This suggests an accommodative environment for corporate profitability, particularly in sectors such as retail and services. With inflationary pressures under control, the outlook for South African equities remains quite positive.
*Daniel Wesonga, Senior Sales Manager at Pepperstone
