Markets Weaken as JSE Falls, Makhanda Property Gains Momentum, Cape Town Tightens Rental Rules and Pick n Pay Expands Loyalty Push
Tuesday’s economic and business news reflected a mixed national picture, with South African financial markets closing lower, property demand strengthening in Makhanda, and new regulatory pressure building in Cape Town’s short-term rental sector. At the same time, retail group Pick n Pay continued its turnaround strategy with an aggressive loyalty campaign aimed at boosting customer spending.
JSE under pressure
The Johannesburg Stock Exchange (JSE) ended in negative territory, with broad losses across sectors dragging the market lower. The All Share Index fell 1.33% to 118,412 points, reversing previous gains and closing near its intraday low.
The index opened at 119,606 and traded between 118,412 and 119,940, compared with a prior close of 120,005. Selling pressure was sustained throughout the session, particularly in resource-linked shares.
Most major indices ended in the red. The Resource 10 index recorded the steepest decline, falling 3.07% to 134,787. The Top 40 Tradeable index dropped 1.47% to 110,591, while the Industrial 25 index fell 0.63% to 131,279.
The Financial 15 index declined 0,63%. Mid-cap and small-cap shares also weakened, while the SA Property index edged down 0.25% to almost 494.
Mining stocks were among the weakest performers. Gold Fields fell 4.65%, Impala Platinum dropped 4.21%, and AngloGold Ashanti declined 3.42%. Harmony Gold and DRDGold also closed lower, reflecting broader weakness in the sector.
A small number of shares moved higher. Alphamin gained 2.91%, Boxer increased 2.67%, Thungela added 2.63%, and Vodacom rose 1.74%. Bidcorp, Datatecv, and Bytes Technology also posted modest gains.
Commodity markets were mixed. Gold dropped $4,710.61 per ounce, while silver and platinum also declined. Brent crude oil rose to $96.6 per barrel.
Global equities showed uneven performance. The Nikkei closed flat at 59,349, while US indices remained elevated.
Cryptocurrency markets were largely stable, with Bitcoin edging slightly higher to $75,966.
Makhanda sees renewed buyer interest driven by schools
In the Eastern Cape, Makhanda’s property market is showing renewed strength, driven largely by demand from families relocating for access to leading schools and Rhodes University. Property agents report increased interest in residential homes linked to education-driven migration.
The town, home to Rhodes University and several prominent private and government schools, continues to attract both local and returning expatriate buyers. Most residential purchases linked to schooling fall within the R2.5 million to R5 million range, while student accommodation remains a major part of the local property sector.
Popular residential areas such as Oatlands North, Somerset Heights, Kingswood, and Sunnyside are seeing renewed demand, with some homes still trading below R2 million.
Despite this growth, Makhanda continues to face long-standing infrastructure challenges, including water supply issues and municipal financial strain. Some institutions have implemented independent water systems to reduce reliance on municipal supply.
Short-term rental regulations target commercial use
The City of Cape Town has proposed new amendments to its rates policy that would classify short-term rental properties as commercial if they are used for that purpose more than 50% of the year. The move forms part of efforts to regulate the expanding short-term letting sector.
Under the proposal, properties used primarily for short-term rentals would be reclassified as business premises and subject to commercial rates. Properties used occasionally for letting would remain classified as residential.
The City plans to introduce a by-law for public participation, with enforcement mechanisms that include data collection from online rental platforms. Authorities say the goal is to improve compliance and ensure fair taxation across the accommodation sector.
Industry stakeholders note that the short-term rental market continues to grow strongly, supported by tourism demand and digital booking platforms, but warn that increased regulation could raise costs for investors and influence future property decisions.
Pick n Pay expands loyalty push in turnaround strategy
The retailer is currently offering up to 15 times standard loyalty points on selected promotional products until 23 April, significantly increasing rewards for customers both in-store and via its online delivery platform.
Under the promotion, shoppers can earn up to 7.5% back on selected items, depending on product and promotion structure. Typically, customers earn 0.5% back through the programme, but recent campaigns have significantly increased returns as the company seeks to drive sales and customer engagement.
The initiative forms part of a broader restructuring strategy under CEO Sean Summers, which includes store closures, conversions, and efforts to stabilise supermarket profitability. The group continues to reposition its store base while attempting to improve trading performance in a competitive retail environment.
Industry analysts note that the loyalty programme remains central to Pick n Pay’s customer retention strategy, with more than 11 million active members participating nationwide.
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