JSE breaks new record in budget week

The JSE’s benchmark All Share Index (Alsi) jumped to a new record above 128 000 points on Friday, just days after the most upbeat SA National Budget in years delivered by Finance Minister Enoch Godongwana on Wednesday.

It gained almost 1.5%, taking the local bourse’s rally to more than 10% year-to-date.

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This follows last year’s bull run on the back of surging precious metals prices, economic reforms gaining momentum, and lower interest rates fuelling business and consumer optimism.

The JSE closed at 128 456 points, with gains largely led by resource stocks.

Sasol surged 16%, while Randgold rocketed over 28%. Other major gainers included Sibanye-Stillwater, Impala Platinum, and Harmony Gold.

Stocks that reached new 52-week highs included Stefanutti Stocks, Telkom, MTN, PPC, Netcare, Valterra, HCI, Pan African Resources, WBHO, FirstRand, Nedbank, Fortress, Old Mutual, Momentum, and the JSE Limited itself.

Currency support added to the positive tone, with the rand trading below R16 to the US dollar.

The JSE has been buoyed this year by strong commodity prices, improved global risk appetite and a relatively stable domestic macro economic backdrop, which got a further fillip from SA’s better fiscal outlook announced in the 2026 Budget.

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Omri Thomas, director at Abax Investments, says as long as commodity prices (notably gold and platinum) continue to rally, the local market should remain well supported.

“We are in a very positive cycle with lower interest rates, a stronger rand and higher confidence in the economy,” adds Thomas.

“We had a good budget and that, coupled with sound monetary management are sending positive signals to foreign investors, who have been underweight South Africa up to now.”

He believes the JSE could benefit from increased foreign inflows in the near term.

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