Bloody Tuesday on the JSE

There was blood on the floor as the JSE’s All Share Index plunged over 5% on Tuesday, mirroring sharp losses across most emerging and major global markets as geopolitical tensions escalated in the Middle East.

The Top 40 index fell 5.5%, while the resource index led declines, trading around 9% lower. The industrial and financial indices were down about 3% and 4%, respectively. This is in sharp contrast to the JSE closing at an all-time high on Friday following the 2026 Budget.

Elke Brink, wealth manager and director at PSG Wealth R21, says this is hopefully “short-term volatility”. “The picture may look different again in a few days,” she says.

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The rand also weakened over 2%, trading at R16.44, well above the psychological R16 to the dollar level as investors moved to safer assets.

The sell-off comes as geopolitical uncertainty reached boiling point following escalating conflict involving the US, Israel and Iran.

Oil prices traded at about $83 a barrel amid concerns over supply disruptions in the region, which is also fuelling fears of inflation. “This is an unfortunate and unexpected development,” Brink notes.

Despite heightened tensions, precious metals did not provide a safe haven on the day. Gold fell more than 3%, while platinum plunged more than 9%.

According to Brink, there is currently a repositioning in gold holdings, with certain countries moving their gold reserves due to geopolitical uncertainty. “Further uncertainty could fuel profit taking and prompt investors to adopt even more conservative positions,” she says.

Globally, most markets were under pressure. The FTSE 100 was about 3% lower and Japan’s Nikkei 225 declined roughly 3%. In contrast, US markets were more resilient, with both the S&P 500 and the Nasdaq Composite marginally higher in volatile trade.

On the JSE, the biggest losses were recorded among mining stocks. Impala Platinum plunged about 15%, while Sibanye Stillwater and Valterra Platinum both fell around 12%.

“Where markets are uncertain, cash or very conservative investment decisions serve as a safe haven for investors and this leads to some movement away from commodities and the liquidation of assets,” Brink says.

On the upside, coal miner Thungela Resources surged 17%, followed by Exxaro Resources, up 2%, and Aspen Pharmacare, which gained 1%.

The market turmoil coincided with further military escalation. Iran has reportedly retaliated against American targets, while the US State Department closed its embassies in Saudi Arabia and Kuwait following drone attacks and urged Americans to leave 14 countries in the Middle East immediately.

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