Markets Edge Into Recovery as Political Tensions and Courtroom Dramas Dominate the National Mood
South Africa’s markets are slowly clawing their way back from last week’s bruising declines, but the broader national mood remains shaped as much by politics and courtroom theatrics as by equity performance.
While the JSE showed early signs of stabilising on Tuesday, the headlines were hijacked by Correctional Services Minister Pieter Groenewald’s controversial call to reintroduce corporal punishment, fresh friction between Pretoria and Washington, and jailed diamond dealer Louis Liebenberg’s escalating legal circus.
In a nutshell: the markets may be recovering — but unlike the correctional system, they don’t need corporal punishment to behave.
JSE Firms, but Sentiment Still Fragile
The JSE All Share Index managed a 0.25% rise to 110,295, ending a jittery session with more questions than answers. The index opened strongly at 110,598 before slipping into negative territory, touching 109,222, and then grinding back into the green.
The lift barely dents the wider softness, with the All Share Index still 1.8% weaker over the past week, even as its 17.68% year-to-date gain remains impressive.
Resources once again took the lead. The Resource 10 rose by 1.23%, powered almost entirely by surging gold prices, which are now trading at $4,161/oz and extending a relentless six-month rally.
Heavyweights Harmony gained 3.23%, Gold Fields added 2.78%, and Anglo American climbed 2.92%, all carrying the sector higher. Meanwhile, Brent crude slipped by 0.93%, a decline that kept oil-linked counters from sharing in the upside.
Industrials, however, dragged the index down. The All Share Industrials slipped by 0.46%, pulled down as Naspers fell by 2.09%, Mr Price dropped by 3.44%, and a bruised Sasol declined by 3.51%, still grappling with weak crude prices and persistent operational uncertainty. With the Industrial 25 also down by 0.48%, the sector remains under pressure as SA-focused and consumer-facing counters continue to lose investor confidence.
International markets offered mild support. Japan’s Nikkei climbed to 49,504, while America’s indices were firmer, with the S&P 500 at 6,766 and the Nasdaq at 23,026. Bitcoin remained choppy, inching up 0.24% to $87,197, although still more than 20% down over the quarter.
Nedbank Pays Transnet R600 Million to End State Capture-Era Feud
In a major corporate development, Nedbank agreed to pay Transnet R600 million, drawing a line under a years-long legal fight over state capture-era financial transactions. The settlement, finalised without any admission of liability, ends litigation centred on interest rate swap deals dating back to 2015–2016, at the height of state capture.
The Special Investigating Unit (SIU) and Transnet had alleged that Nedbank profited by over R2.7 billion through the derivative structures. Nedbank rejected the claim, saying its margins were market-related and below R43 million, and also filed a counterclaim.
Both organisations remain steadfast in their original positions but chose to settle to avoid protracted court battles and further damage to their long-standing commercial relationship.
The joint statement stressed that the agreement allows both parties to “continue developing this important relationship” for the sake of infrastructure investment and economic growth.
US–South Africa Relations Deteriorate Further
Diplomatic relations between Pretoria and Washington sank to a new low this week, with senior government officials indicating the USA is preparing to exclude South Africa from participating in G-20 meetings during its presidency.
The deterioration follows the United States (US) boycott of the G-20 leaders’ summit hosted in South Africa — the first ever held on African soil — and Washington’s warning note urging Pretoria not to adopt the summit declaration. South Africa proceeded regardless.
Tensions have escalated further, with US accusations of genocide against white Afrikaners and claims of land seizures — allegations Pretoria has dismissed as inflammatory and false.
Washington is reportedly considering blocking visas for South African delegates expected to attend G-20 working groups over the next year. Some insiders suggest the US may even push for South Africa to be replaced in the grouping by a Central European state more aligned with the Trump administration.
Any formal change, however, would require full member consensus — a high bar that may prevent dramatic action, even amid the political theatre.
Groenewald Sparks Outrage With Call to Reinstate Corporal Punishment
Correctional Services Minister Pieter Groenewald ignited a fierce national debate after suggesting the reintroduction of corporal punishment for minor offenders who cannot afford bail.
Speaking in Parliament, Groenewald said the current system, with over 60,000 remand detainees, including 2,500 people jailed for amounts under R1,000, is collapsing under its own weight. He argued that controlled, court-supervised lashes could ease prison overcrowding and cut costs.
MPs across party lines slammed the proposal. EFF MP Carl Niehaus called it “racist, populist, and repugnant,” accusing Groenewald of invoking apartheid-era trauma.
The ANC’s Mzwanele Sokopo reminded the committee that corporal punishment was outlawed in 1997.
The DA’s Janho Engelbrecht went further, warning that Groenewald’s flirtation with constitutional amendments opens “a slippery slope” toward weakening entrenched human-rights protections.
Groenewald remained defiant, claiming public support for harsher sentencing options and insisting that lashes would only be issued under strict judicial authority.
He also raised the possibility of deporting foreign offenders to serve their sentences elsewhere, lamenting failing infrastructure, shrinking budgets, and restrictive parole rules.
Louis Liebenberg Drama Escalates as Court Delays Mental Evaluation
Meanwhile, notorious diamond dealer Louis Liebenberg remains mired in legal chaos, with his court-mandated psychiatric evaluation at Weskoppies still delayed.
Liebenberg, facing 42 charges of fraud, racketeering, money laundering, and statutory offences amounting to more than R4 billion, is number 53 on the waiting list, meaning he may wait months before evaluation.
Liebenberg, his wife Desiree, and seven co-accused appeared again in the Bronkhorstspruit Magistrate’s Court, where the matter was postponed. The group is due back on 13 February for a bail extension, while 10 December marks the continuation of Liebenberg’s own bail application.
Outside court, Liebenberg launched into a familiar tirade, complaining of conditions in detention, accusing the magistrate of prejudice, and taking aim at Correctional Services Minister Pieter Groenewald — whom he mockingly referred to with profanities.
He claimed he had lost significant weight, lacked access to religious material, and had been prevented from exercising in the prison courtyard. He also insisted he was being targeted for political reasons and vowed continued loyalty to Jacob Zuma and the MK Party.
Important Notice and Disclaimer
This article is provided for general information and educational purposes only and does not constitute financial advice as defined by the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act). The content should not be relied upon as a basis for making any investment decisions.
Please consult with a licensed financial advisor to determine if such investments are appropriate for your individual circumstances.
Everest Wealth Management (Pty) Ltd is an authorised Financial Services Provider (FSP 795) and a registered credit provider NCRCP 21504.