Moody’s Exits SA Ratings Register as Migration Shifts and Global Tech Race Intensifies
South Africa’s regulatory landscape, internal migration patterns, and global technology developments shaped yesterday’s major headlines, alongside weaker equity market performance.
Authorities confirmed the deregistration of a key international credit ratings provider’s local unit, while new data pointed to a rise in reverse semigration toward Gauteng.
Globally, advances in artificial intelligence-driven robotics continued to gather pace, with China expanding large-scale humanoid robot training facilities. Meanwhile, local markets closed lower, pressured by declines in resource stocks despite gains in select industrial counters.
JSE declines as resources lead losses
South African equities closed lower, with the benchmark JSE All Share Index shedding 0.77% to end at 113,520 points.
The index opened at 114,630 and traded within a range of 113,461 to 115,111 during the session. Despite the daily decline, the market remains up 25.29% over the past year.
Losses were led by resource stocks, with the Resource 10 Index falling 1.51%. Financials also weakened, with the Financial 15 Index declined 0.46%, while the Top 40 Index dropped 0.55%. The SA Property Index was down 0.82%.
By contrast, industrial counters showed resilience. The All Share Industrials Index gained 0.48%, supported by modest advances in telecommunications and transport-related shares.
Among individual stocks, Sasol rose almost 5% to R228, supported by higher Brent crude prices, while Telkom gained 3.89% to R60.55. Grindrod advanced 3.64%, and Mondi plc climbed 3.28%, while MTN Group added 2.27%.
On the downside, Northam Platinum fell 5% to R311.94, while African Rainbow Minerals dropped 2.89%. Impala Platinum declined 2.03%, and Gold Fields lost 2.74%.
AngloGold Ashanti, Sasol, and FirstRand led trading activity in terms of value and volume.
Sector performance was led by chemicals, which rose 4.05%, followed by industrial materials, which gained 2.40%, and telecommunications, which increased 1.53%.
On the currency front, the rand strengthened to R16.70 against the dollar, gaining 1.03% on the day, and also firmed against the euro and the pound.
Silver hovered around $73 an ounce after falling more than 3% in the previous session, as stalled US-Iran negotiations and the continued closure of the Strait of Hormuz heightened concerns about rising inflation.
Platinum futures plunged to $1,950 per ounce, their lowest level since early April, while Brent crude oil surged by more than 5% to above $117 per barrel, reaching their highest level since mid-2022, as the ongoing conflict with Iran showed no signs of easing and disruptions in the Strait of Hormuz persisted.
Global markets traded cautiously, with U.S. and European equities mostly softer as investors awaited key central bank signals and corporate earnings updates. Asian markets were mixed, while ongoing geopolitical tensions and higher oil prices continued to weigh on overall sentiment.
Moody’s South Africa unit deregistered
The Financial Services Conduct Authority (FSCA), in consultation with the Prudential Authority, issued a notice after the company formally renounced its registration as an eligible External Credit Assessment Institution (ECAI).
The local unit, part of Moody’s Corporation, had been active in South Africa since 2003 and has assigned a sovereign credit rating to the country since 1994. Its registration as a credit rating agency was approved in 2014, enabling banks to use its ratings for regulatory capital calculations.
According to the FSCA, the firm’s registration under the Credit Rating Services Act has now been cancelled at the firm’s request. However, transitional arrangements will allow continued use of its ratings.
The regulator added that the agency is required to notify all rated entities and issuers of its change in status.
Reverse semigration toward Gauteng gains momentum
According to the Wise Move 2026 South African Migration Report, based on more than 30,000 household moves, interprovincial mobility increased from 4,552 moves in 2024 to 5,385 in 2025.
Gauteng recorded a rise in inbound share from 25.32% to 27.97%, while its outbound share declined slightly to 44.99%. Although the province remains in a net outflow position, the gap narrowed compared to the previous year.
The Western Cape’s net gain reduced as inbound movement declined and outbound movement increased. Its inbound share fell to 31.03%, while outbound movement rose to 18.73%.
The report shows strong growth in specific migration corridors. Movement from the Western Cape to Gauteng increased by 58.6%, while relocations from KwaZulu-Natal to Gauteng rose by 54.0%.
Within the Western Cape, departures were concentrated in Cape Town suburbs including Durbanville, Brackenfell, Kraaifontein and Bellville, as well as areas along the West Coast such as Milnerton and Bloubergstrand.
Arrivals in Gauteng were focused on established economic nodes, including Bryanston, Morningside, Illovo, Sandown and Houghton Estate, with additional activity in Lone Hill, Ferndale, Brooklyn and Faerie Glen.
The data indicates that interprovincial migration remains active across major provinces, with increased two-way movement between economic hubs.
China expands humanoid robot training infrastructure
Facilities have been established in cities including Beijing, Shanghai, and in Shandong Province, where robots are trained in simulated real-world environments such as retail stores and logistics hubs.
At a major training centre in Beijing’s Shijingshan district, more than 100 humanoid robots have been undergoing training since October 2025. The facility spans over 10,000 square metres and replicates tasks such as folding clothes, sorting parcels, scanning barcodes, and operating locks.
Training involves repeated task execution, with robots guided through teleoperation and human demonstration. The collected motion data is processed into training material for artificial intelligence models, which are then redeployed to improve performance.
According to industry participants, a single robot can generate approximately four hours of training data per day. At scale, this enables tens of thousands of data collection tasks daily.
The development of such training environments has been incorporated into China’s 15th Five-Year Plan (2026–2030), with a focus on advancing embodied artificial intelligence through real-world testing and data collection.
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