Markets Weaken as Financials Slip, While China and Retail Drive Broader Economic Headlines
South Africa’s markets ended yesterday on a slightly weaker note as the Johannesburg Stock Exchange (JSE) retreated, pulled lower by financial and retail stocks. At the same time, positive developments in the automotive and banking sectors, and renewed corporate ambition from Pick n Pay, reflected broader changes in the country’s economy.
From Chinese investment in local car manufacturing to a major banking deal connecting Angola to global markets, the day’s developments illustrated South Africa’s active and interconnected business landscape.
JSE Dips as Financials Weigh on Market
The JSE All Share Index (ALSI) fell 0.64% to 109,670 points by the close of the markets on Thursday, reversing some of the gains made earlier in the week as investors took profits before the month-end. Trading remained contained within a band of 109,095 to 110,179 points, suggesting cautious sentiment rather than a full-scale sell-off.
Despite the dip, the index remains nearly 20% higher year to date, signalling that confidence in South African equities is largely intact amid steady commodity demand and resilient corporate earnings.
The market’s movement reflected sectoral divergence: resource counters held firm, while financial and industrial shares lost ground. Analysts attributed the rotation partly to renewed interest in safe-haven assets and concerns about consumer-driven growth as inflation and lending costs remain high.
Resources Outperform, Financials Retreat
The Resource 10 Index gained 0.42%, boosted by miners such as DRDGOLD, BHP Group, and Impala Platinum, all benefitting from firm metal prices and a softer dollar. Conversely, the Financial 15 Index slipped 1.32% as banks and insurers like Capitec, Nedbank, and Sanlam came under pressure. The Industrial 25 Index fell 0.97%, weighed down by retailers and pharmaceutical companies.
This rotation highlights investor caution toward consumer and banking stocks and a preference for the stability of commodity-linked sectors — a trend consistent with broader emerging-market sentiment.
Rand and Commodities Hold Steady
The rand traded steadily at R17.28 to the US dollar, gaining a modest 0.08% on Thursday. Against other currencies, it was quoted at R18.29 to the euro and R21.70 to the British pound, holding within familiar ranges.
Commodity prices were mixed: gold edged 0.54% lower to $4,003 per ounce, while platinum rose 0.73% to $1,098, and palladium added 0.61%.
Brent crude oil remained stable at $86.12 a barrel, providing some reassurance that global energy prices will not reignite inflation in the short term.
Globally, sentiment remained constructive, with the Nikkei closing 0.44% higher and both the Dow Jones and S&P 500 posting small gains, offering some external support for South African markets.
Miners Shine While Retailers and Banks Falter
Mining stocks led the day’s gainers. ASPI rose 4.5%, Alphamin Resources added 4.4%, and DRDGOLD advanced 4.3%, supported by metal price stability and production optimism. Larger players like BHP Group and Impala Platinum also made solid gains.
On the downside, Aspen Pharmacare fell 3.55% after a muted trading update, and Pick n Pay dropped 3.09% as investors responded cautiously to its restructuring efforts.
Banking heavyweights Capitec and Nedbank also declined, down 2.31% and 2.12%, respectively, ahead of key monetary policy signals expected in November.
Chinese Carmaker BAIC Expands Local Manufacturing
In industry news, Chinese automaker BAIC South Africa announced that its new B30 SUV will be assembled locally at the company’s Coega facility in Gqeberha. The company said production will start shortly after the vehicle’s November 2025 launch — a move signalling deeper investment and localisation in the country’s automotive sector.
The R11 billion Coega plant, one of the largest industrial investments in the sector, already produces the B40 Plus and X55 Plus models. The addition of the B30 SUV is expected to expand production capacity and support hundreds of local jobs. BAIC also emphasised that local assembly will strengthen supply-chain resilience and reduce dependency on imports.
The expansion follows similar moves by Chinese competitors Chery, Haval, and BYD, which have been gaining market share thanks to competitive pricing and rising consumer demand.
Pick n Pay CEO Pushes to Regain Market Leadership
In the retail space, Pick n Pay CEO Sean Summers reaffirmed his ambition to restore the supermarket chain to its former glory, declaring that the company is “on a mission again to be the best supermarket chain in South Africa.”
During an interview with BizNews following the release of its interim results, Summers acknowledged that Pick n Pay’s turnover grew by 4.9% to R58.8 billion, driven largely by Boxer’s 13.9% growth to R22.52 billion, while the main Pick n Pay brand showed just 0.1% growth. The company has reduced its store estate by a net 59 outlets over the past year, which Summers said was part of a deliberate strategy to remove loss-making stores and strengthen long-term sustainability.
Summers, who previously led the retailer from 1999 to 2007, said Pick n Pay had “forgotten what it stood for” and must now rebuild institutional knowledge and customer trust to regain its market leadership against competitors Shoprite and Woolworths. He emphasised that success is not about having the most stores but about operational excellence and customer loyalty.
Standard Bank Re-enters Angola Through JPMorgan Partnership
Meanwhile, Standard Bank announced that it has renewed its correspondent banking relationship with JPMorgan, marking the US financial giant’s re-entry into the Angolan market. The agreement will allow Standard Bank Angola to process transactions in US dollars and euros, improving access to global financial systems and enabling more efficient cross-border settlements.
“This achievement reinforces Standard Bank Group’s purpose of driving Africa’s growth by connecting African markets to international financial ecosystems,” said Luvuyo Masinda, CEO of Standard Bank Corporate and Investment Banking (CIB). He added that the two-year approval process highlights the strategic importance of Angola’s reintegration into global finance and positions Standard Bank to better serve clients in key growth sectors.
Masinda, who took over as CIB chief last year, oversees one of the group’s most profitable divisions, which accounts for nearly half of Standard Bank’s earnings.
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