Bread, bullion and broadband: JSE climbs as boardroom battles shape the economy
From the price of a loaf of bread to the fight over satellite internet and the politics of empowerment, South Africa’s economy is being reshaped by scale, regulation, and hard competition. On the markets, investors sent a clear signal on Friday: when in doubt, buy the miners. The JSE closed nearly 1% higher, driven by strong gains in gold and platinum shares, while retailers and banks trailed behind.
Markets: mining stocks power ahead
The JSE All Share Index rose 0.97% to close at 123,022, extending its year-to-date gain to almost 20%. The index traded between 122,192 and 123,356 and finished close to its session high, reflecting steady demand through the afternoon.
Resource counters did the heavy lifting. The Resource 10 index jumped 2.94%, far outpacing the broader market. Investors continued to position for firm commodity prices, particularly in precious metals.
AngloGold Ashanti climbed 4.64%, while DRDGOLD surged 9.2%. Platinum producers also advanced, with Northam Platinum up 4.57% and Impala Platinum gaining 4.15%. The Precious Metals and Mining sector rose 3.29%.
Industrial shares were largely flat, with the All Share Industrials index edging up 0.08%. Financials slipped 0.20%. Standard Bank declined 1.38%, and Growthpoint Properties fell 1.54%.
Retail stocks came under pressure. SPAR Group dropped 7.33% and touched a new 52-week low, making it the worst performer in the Top 100. Clicks Group slipped 1.8%.
Trading activity was concentrated in mining counters. AngloGold Ashanti recorded more than R2.25 billion in value traded, while Gold Fields exceeded R1.6 billion, pointing to strong institutional interest.
Gold traded at $5,109 per ounce, up more than 50% year to date. Platinum rose to $2,176 per ounce. The rand strengthened slightly to R16.01 against the dollar, while global markets were mixed. Japan’s Nikkei 225 eased, while the S&P 500 and NASDAQ Composite remained near record levels. Bitcoin traded at $68,099.
The corporate fight over bread
Away from the trading screens, one of the fiercest corporate contests in South Africa is unfolding in the bread market.
Analysts say the country’s leading milling and baking companies, including Tiger Brands and Premier, are entering a new phase where efficiency will matter more than price increases.
Bread is a mature and highly competitive category, and margins are thin. Companies that can produce more loaves at lower cost are expected to win market share.
Tiger Brands is restructuring its milling and baking division and building a large automated “Super Bakery” expected to replace six smaller inland facilities by 2026. Management has indicated that automation and consolidation could significantly reduce conversion costs and lift margins.
Premier has focused on vertical integration and large-scale automated bakeries. Its Pretoria and Aeroton facilities can produce up to 8,000 loaves per hour, well above traditional plants. Older bakeries are expected to be phased out as the company shifts to higher-efficiency operations.
The industry is still marked by the legacy of the mid-2000s bread price-fixing scandal uncovered by the Competition Commission. Companies were fined, and public trust was damaged. Competition has since intensified, and pricing remains the main battleground. Analysts argue that long-term success will depend on scale and asset utilisation rather than aggressive price hikes.
Starlink’s licensing dispute
Regulatory tension is also rising in the telecommunications sector.
Entrepreneur Elon Musk has publicly expressed frustration over delays in approving Starlink’s operations in South Africa. The dispute centres on ownership requirements in the Electronic Communications Act, which require 30% of licensed telecom operators to be owned by historically disadvantaged groups.
Starlink does not currently meet this threshold and has not secured a licence. The Independent Communications Authority of South Africa (ICASA) has warned that accessing Starlink through foreign-registered roaming packages breaches national law and has begun inspecting unauthorised equipment.
Although policy adjustments now allow foreign satellite operators to meet empowerment targets through investment programmes instead of equity transfers, approval has yet to be granted. Analysts suggest that a legal launch could occur by late 2026 if regulatory issues are resolved, though court challenges from competitors could delay the process.
Ramaphosa defends BEE
At the political level, President Cyril Ramaphosa has reaffirmed the government’s commitment to Broad-Based Black Economic Empowerment (BBBEE).
Responding to criticism during debate on his State of the Nation Address, Ramaphosa said that BEE has contributed to rising incomes among black households and reduced poverty levels since 2006. He acknowledged that income gaps remain wide but argued that the solution is to strengthen transformation policies, not abandon them.
The government is reviewing the BBBEE framework to improve its effectiveness and is considering measures such as a proposed R100 billion Transformation Fund. At the same time, new Employment Equity targets will require larger companies to submit five-year workforce plans aligned with demographic goals.
Critics argue that empowerment laws deter investment and benefit a small elite, while supporters say they remain necessary to address deep inequality.
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