Resources rally takes JSE to new high

South Africa’s main stock market hit a new high on Friday morning, with the FTSE/JSE All Share Index topping the 122 500 points mark (1oam), up around 0.85% on the bull run of bullion and other resources stocks.

World gold and platinum prices broke through new records, giving the JSE a boost. This means Africa’s biggest bourse is already up more than 5% for 2026 to date.

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The rand also made further gains in the early morning, trading as strong as R16.08 to the dollar – it’s strongest position since late June 2022.

Commodity stocks, including gold and platinum group metals (PGMs), led the gains as the Resources index surged by as much as 4% just before 10am.

The Top 40 index was also up, but most other indices were marginally down.

Both the JSE and rand lost a bit of momentum in the late morning, and market watchers will be paying close attention to how the bourse closes the week following the World Economic Forum in Davos, where US President Donald Trump dominated the limelight and Trump tariff volatility continues.

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On the JSE, Pan African Resources, Harmony Gold, Africa Rainbow Minerals (ARM), Gold Fields, DRD Gold, and AngloGold led the gains for resources stocks. However, US-based ASP Isotopes was the biggest gainer of the bourse’s top 100 stocks.

PGM stocks, including Implats, Valterra, Sibanye Stillwater, Northam Platinum, and ARM hit 52-week highs, while the JSE itself also featured on the list.

FTSE/JSE All Share Index and JSE share price

SA Inc stocks 

Omri Thomas, director at Abax Investments, told Moneyweb that SA Inc stocks have not performed that well, but that the operating environment is improving.

“Electricity supply has stabilised, interest rates are declining and the rand is stronger. These factors are supportive of economic growth and many of these companies are coming off a low base.”

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According to Thomas these stocks are not expensively valued, suggesting there is room for further share price appreciation.

The financial sector also presents opportunities. “Despite the recovery in bank shares, many still trade on single-digit price-to-earnings ratios with dividend yields north of 5%,” Thomas adds.

This could provide additional support for the broader market.

He is of the view that there are several reasons to believe that the JSE could continue to rise. “A level of 125 000 index points is not an unreasonable expectation.”

Outlook for the rand 

It would also not be surprising to see the rand move below R16 to the dollar, he says.

“If commodity prices remain strong, South Africa’s trade balance should improve. The combined flows from commodities and capital markets are supportive of the rand.

“Meanwhile, our bonds still offer a positive real yield relative to inflation, which could attract capital inflows and further strengthen the currency,” Thomas notes.

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