Resources power JSE higher as Joburg water crisis boils over and new report shows brain drain deepening
The JSE closed firmly in the green on Wednesday, with mining giants driving the market higher and pushing the All Share Index further into positive territory for the year. The benchmark index ended the session at 121,753, up 0.72%, closing near its highest level of the day after steady buying throughout the afternoon. The gain takes the market’s year-to-date performance above 20%, highlighting the strong start to 2026.
The rally came as resource stocks surged, offsetting weakness in major industrial counters. At the same time, outside the markets, frustration spilled onto the streets of Johannesburg as residents protested ongoing water outages, while a new report highlighted the scale of South Africa’s growing emigration trend. In the mining sector, the government signalled policy shifts aimed at reviving exploration and restoring investor confidence.
Mining shares lift the market
The main driver of Wednesday’s gains was the resource sector. The Resource 10 index jumped 2.48%, significantly outperforming the broader market and confirming investor appetite for mining and energy counters.
Heavyweights led the charge. AngloGold Ashanti rose 3.38% to R1,758.28, BHP gained 3.04%, and Anglo American climbed 2.53%. Gold Fields added 2.01%, and Glencore advanced 1.90%.
Other resource-linked shares also recorded strong advances. Thungela surged 7.87%, Sasol rose 5.47%, and South32 gained 3.61%. Impala Platinum increased 3.43%, while DRDGOLD added 3.3%.
Sector performance reflected this trend. Chemicals rose 3.92%, oil, gas, and coal gained 2.88%, energy climbed 2.71%, and basic materials advanced 2.45%. Industrial metals and mining added 2.43%.
Industrials under pressure
Despite the headline gain, not all sectors participated. The Industrial 25 declined 0.67%, dragged lower by some of the market’s largest technology and consumer stocks.
Naspers dropped 2.34% to R905.80, and Prosus fell 1.51% to R836.33, limiting the overall upside. Quilter declined 6.73%, Bytes fell 2.21%, and Reinet Investments SCA slipped 1.85%. Truworths also lost ground, down 1.65%.
Financials were more stable. The Financial 15 index edged up 0.17%. Firstrand and Capitec both reached new 52-week highs during the session. Mid-cap shares rose 0.99%, and small caps gained 0.79%.
The SA Property index climbed 1.34%, with Attacq up 2.86%, signalling improving sentiment in property counters.
Trading activity remained strong. Naspers was the most traded share by value, with more than R2.3 billion changing hands. Capitec and AngloGold Ashanti also recorded heavy turnover, each exceeding R1.4 billion in traded value.
Rand steady, commodities ease
The rand remained stable against the US dollar at R15.87. The euro traded at R18.83 and the pound at R21.62.
Commodity prices were slightly softer in early trade. Gold slipped 0.15% to $5,075.60 an ounce after a strong previous session. Platinum fell 0.79%, while palladium rose 0.95%. Brent crude edged down 0.11% to $69.55 a barrel.
Globally, markets were mixed. The Nikkei stood at 57,801, while the Nasdaq traded at 23,066 and the S&P 500 at 6,941. European indices remained firm. In contrast, cryptocurrencies continued to struggle, with Bitcoin down 1.24% at $67,021.75.
Water crisis sparks protests
While investors focused on gains, anger mounted on the streets of Johannesburg over ongoing water outages.
In Melville, around 150 residents marched with empty plastic bottles and banners, demanding a reliable water supply and accountability from officials. Protesters gathered along Jan Smuts Avenue, keeping one lane open for traffic as motorists hooted in support.
Residents say they have gone days without water. “We are living in limbo,” said Westdene resident Marcé Heath, calling for clearer communication from Johannesburg Water. Others chanted “We want water” as they banged empty bottles in Parktown.
At a media briefing near the Brixton reservoir construction site, tensions flared when resident Mauritz Preller confronted Mayor Dada Morero, accusing him of staging a “photo opportunity” while residents remained without water. Morero said striking workers had returned to work and blamed high demand and infrastructure strain for the outages.
Johannesburg Water admitted the system is under pressure and that faults at the Hurst Hill 2 Reservoir have not yet been fully identified. Officials said alternative water supply measures are being implemented while the new Brixton reservoir undergoes testing.
Emigration concerns deepen
A new report has highlighted another pressing challenge: the continued loss of skilled South Africans.
The South African Diaspora Report 2026 found that more than 1 million South Africans now live abroad, with concerns about crime, safety, and career prospects driving emigration. Nearly half of those surveyed cited insecurity as their main reason for leaving.
The study shows that 90% of respondents hold tertiary qualifications, and 60% have postgraduate degrees. Around 60% live in households earning more than $100,000 a year, with 20% earning above $200,000. By comparison, South Africa’s average annual household income stands at just over R200,000.
Less than a quarter of those surveyed plan to return. The UK, Australia, and the US host more than half of the diaspora. The report also found that 90% of South African students would like to work abroad, with intentions among younger Black students rising sharply in recent years.
Mining policy shift
Against this backdrop, Mineral and Petroleum Resources Minister Gwede Mantashe announced the removal of the Black Economic Empowerment participation requirement at the prospecting stage of mining.
Speaking at the Investing in African Mining Indaba in Cape Town, Mantashe said the change aims to boost exploration and attract investment. BEE requirements will still apply at the production stage, when economic value is created.
The move comes amid broader reviews of transformation legislation, including draft changes to the B-BBEE Codes of Good Practice by Trade Minister Parks Tau. Proposed changes include allowing companies to contribute to a central Transformation Fund rather than identifying their own enterprise development beneficiaries.
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.