JSE Breaks 90,000 Points as Gold Prices Soar and Investor Sentiment Improves

The Johannesburg Stock Exchange (JSE) has reached a historic milestone, with the All Share Index surpassing 90,000 points for the first time. The surge, driven by a strong rally in gold prices and renewed investor confidence, reflects growing optimism in South Africa’s financial markets.

Key Drivers of the JSE Rally

Leading the market surge were retail and mining stocks, with notable gains from:

• Retailers: Pepkor (+6.3%), Mr Price (+5.9%), Truworths (+3.8%), and TFG (+3.5%)
• Mining & Commodities: African Rainbow Minerals (+4.7%), AngloGold (+3.6%), and DRDGold (+3.0%)

Annabel Bishop, chief economist at Investec, noted that investor risk perception had eased following the tabling of the 2025 Budget by Finance Minister Enoch Godongwana. “With the budget out of the way and copper prices rising on China’s stimulus measures, South Africa is seen as a strong value market,” she said.

Gold Prices Hit New Highs

Gold prices reached an all-time high of $3,031 per ounce, buoyed by global uncertainties, rising trade tensions, and growing expectations of US Federal Reserve rate cuts. According to investment firm UBS, gold has gained 15% year-to-date, following a 27% rise in 2024.

The surge comes amid geopolitical concerns, including the Middle East conflict and the US-China tariff standoff. UBS analysts warn that renewed US trade restrictions could fuel further gains in gold.

How Global Trade Policies Impact the JSE

The rally in mining stocks is partly linked to copper’s growing role in renewable energy infrastructure. Bishop noted that the US tariff hike on steel and aluminum and concerns over copper supply chains had created investment opportunities for South African mining houses.

Meanwhile, South African tech giant Naspers/Prosus also contributed to the JSE rally, with investors reacting positively to Tencent’s latest earnings report.

Future Outlook for the JSE

Market analysts suggest that the JSE’s bullish momentum may continue, provided that:

• The US Federal Reserve signals a shift toward a looser monetary policy
• Global commodity prices, particularly gold and copper, remain strong
• South Africa makes further progress in resolving freight and electricity constraints

With the JSE hitting this landmark, investors remain optimistic about South Africa’s economic recovery and the resilience of its financial markets.

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