Markets fall as gold slide hits JSE while warnings emerge overpower and Gauteng’s economic outlook
South Africa’s financial markets closed lower on Thursday as falling precious-metal prices triggered a broad sell-off in mining shares, pulling the FTSE/JSE All Share Index sharply down.
At the same time, developments in the country’s energy and economic landscape drew attention, with former Eskom chief executive André de Ruyter warning that South Africa faces renewed power risks later in the decade, while eThekwini Municipality announced plans to invest R1.9 billion to position Durban as a superyacht servicing hub. In Gauteng, Premier Panyaza Lesufi unveiled a new economic plan to address rising unemployment and slow growth in the country’s economic heartland.
JSE declines as resources retreat
The FTSE/JSE All Share Index ended the day 2.76% lower at 110,572 points. The FTSE/JSE Top 40 Index dropped 2.97% as several large companies recorded declines.
The session was largely shaped by movements in the precious-metals sector. Gold traded around $4,560 an ounce, more than 5% lower on the day.
Mining counters reflected the shift. Sibanye Stillwater fell 10.66% to R46.24 and Impala Platinum declined 10.02% to R223.29.
Gold producers also moved lower. Harmony Gold dropped 9.05%, while Pan African Resources fell 9.03%.
Other companies in the sector recorded declines as well, including AngloGold Ashanti, down 6.67%, and Gold Fields, which lost 5.77%.
As a result, the FTSE/JSE Resource 10 Index ended the day 6.38% lower.
Energy shares rise
Energy-linked shares moved higher during the session.
Coal producer Thungela Resources rose 6.06% to R175 and reached a new 52-week high during the day.
Petrochemical group Sasol gained 5.58% to R214.42, while Exxaro Resources also touched a new 52-week high.
Sector performance reflected the trend. The chemicals sector increased by more than 4%, while oil, gas, and coal shares rose about 2.45%.
Several consumer-focused companies recorded gains despite the broader market decline. Pepkor Holdings rose 2.12%, Truworths International increased 1.86%, and Discovery Limited climbed 1.83%.
The FTSE/JSE Industrial 25 Index ended 1.30% lower and the FTSE/JSE Financial 15 Index declined 0.84%.
Property shares were little changed, with the FTSE/JSE SA Listed Property Index down 0.26%.
Among larger companies, Compagnie Financière Richemont fell 2.82%, while BHP Group and Anglo American both declined 3.87%.
Technology investors Prosus and Naspers closed lower as well.
Global markets were mixed, with Japan’s Nikkei 225 near 53,373 and the Nasdaq Composite around 22,152. In Europe, Germany’s DAX stood near 22,962 and France’s CAC 40 around 7,842.
Cryptocurrency markets also moved lower, with Bitcoin trading near $69,696 and Ethereum at roughly $2,125.
De Ruyter warns about future electricity risk
Former Eskom chief André de Ruyter said South Africa is currently benefiting from a temporary period of stability in electricity supply but faces risks later in the decade.
Speaking during a discussion organised by the Saïd Business School at the University of Oxford, he said the country has a limited period in which to expand generation capacity.
He said the stability is partly due to skilled system operators at Eskom and increased private sector investment in electricity generation.
According to de Ruyter, private companies have installed between six and seven gigawatts of rooftop generation capacity in a short period.
He referred to Eskom’s medium-term system adequacy outlook report, which indicates an increased risk of load shedding from 2029 as coal-fired power stations are retired.
De Ruyter said renewable energy and battery storage can be deployed quickly within that timeframe.
Durban targets superyacht industry
City officials said a delegation attended the Yachting Aftersales and Refit Experience conference in Viareggio, Italy, where a Letter of Intent was handed over to Navigo, a group involved in superyacht industry development.
The agreement signals potential investment of more than R1.9 billion in superyacht infrastructure and refit facilities in Durban.
According to the municipality, the development could create more than 2,500 jobs by 2030 in areas such as marine engineering, tourism and manufacturing.
Plans include the development of a 24-hectare superyacht precinct in the Port of Durban for refit and servicing operations.
The municipality is also working with the Durban University of Technology on plans to establish a professionalised superyacht academy to train young South Africans in marine-related skills.
Gauteng releases economic plan
Gauteng contributes more than one-third of South Africa’s gross domestic product, but the report notes that unemployment remains high.
According to the plan, manufacturing employment has declined significantly over the past decade while the financial services sector has expanded.
The report states that finance now accounts for about 40% of Johannesburg’s economy, concentrated largely in Sandton.
Manufacturing employment in Gauteng has declined by nearly 200,000 jobs since 2010, while unemployment in the province stands at about 34.4%.
The provincial government aims to secure about R800 billion in investment commitments by 2028 through incentives, infrastructure development, and support for sectors including automotive manufacturing, pharmaceuticals, defence, and cannabis production.
The report notes that improving infrastructure and expanding investment will be key to increasing employment and economic growth in the province.
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