JSE Slips as Financial Shares Drag while Policy and Tax Developments Make Headlines
South African markets ended Thursday slightly weaker, with financial and property shares weighing on the broader index while gains in some resource counters helped limit the losses.
Several developments with broader economic implications also unfolded during the day. The Department of Home Affairs moved faster than expected in expanding access to Smart ID services across the country, opening new points where South Africans can apply for the documents.
Meanwhile, a ruling by the Supreme Court of Appeal sent a clear warning to taxpayers about the risks of failing to declare foreign income, underlining the extensive powers available to the South African Revenue Service when investigating suspicious transactions.
New international research also recognised South Africa within the wider global picture, indicating that the country remains strongly connected to international trade and economic flows despite growing geopolitical tensions and ever-changing global alliances.
JSE edges lower as financial shares weigh on market
South African equities closed modestly weaker on Thursday as declines among financial and property shares offset gains in commodity-linked counters.
The FTSE/JSE All Share Index finished the session at 116,937, down 0.39% from the previous close.
Most of the major indices ended in negative territory. The Top 40 Tradeable Index slipped 0.33%, while the Financial 15 Index recorded one of the sharpest losses of the day, declining 1.83%. The SA Property Index also weakened, falling 1.98%.
Industrial shares were comparatively stable. The All Share Industrials Index edged 0.23% lower, while the Industrial 25 Index closed 0.14% down.
Resource counters provided some support to the broader market. The Resource 10 Index rose 0.88%, helped by gains in several mining and commodity-related stocks.
Among the strongest performers was Sasol, which surged 5.88% to close at R172.00. Technology group Bytes Technology advanced 3.15%, while gold producer Gold Fields climbed 3.49%.
Other notable gainers included British American Tobacco, which rose 3.41%, and coal exporter Thungela Resources, up 4.04%. Commodity giant Glencore added 1.72%, while Sibanye-Stillwater and packaging group Mondi also recorded solid gains.
Trading volumes remained strong in several large counters. Gold Fields recorded the highest trading value of the day, with transactions worth more than R1.5 billion. AngloGold Ashanti followed with about R1.27 billion, while Valterra Platinum generated trades worth roughly R1.22 billion.
Sector performance was mixed. Chemical companies delivered the strongest gains, rising 4.48%, while industrial materials advanced 2.46%. Oil, gas, and coal stocks climbed 2.26%.
In commodities markets, gold prices slipped, while silver, platinum, and palladium also edged lower.
Oil prices moved sharply higher, with Brent crude rising to about $100.66 per barrel, reflecting ongoing volatility in global energy markets.
Smart ID services expand rapidly across the country
Access to Smart ID services is expanding faster than expected after the Department of Home Affairs rolled out the programme to more service points across the country this week.
The initiative forms part of a broader effort to make it easier for South Africans to apply for Smart ID cards and passports without relying solely on traditional Home Affairs offices.
The original pilot programme, launched roughly a decade ago, allowed South Africans to apply for Smart IDs and passports at a limited number of locations and required Home Affairs staff to be stationed there.
Under the new system, participating institutions can connect directly to the department through a secure Digital API Gateway, allowing the service to be offered more widely.
The expansion also brings the service to new regions for the first time, including parts of the Free State and the Northwest, where access had previously been limited.
The government plans to grow the programme further in the coming months. Officials aim to reach 100 service points by the end of March 2026, with a longer-term target of expanding the network to 1,000 locations nationwide.
Global report highlights South Africa’s economic connections
The DHL Global Connectedness Report 2026, compiled with the New York University Stern School of Business, ranks South Africa 53rd among the world’s most globally connected economies.
The report analyses 180 countries, drawing on millions of data points to track the movement of trade, capital, information, and people across borders.
One of its key findings is that globalisation has remained resilient. Global connectedness reached 25% in 2025, matching the record level first recorded in 2022.
For South Africa, which relies heavily on international markets to export minerals, manufactured goods, and agricultural products, strong trade links remain critical to economic growth.
However, the study suggests there is still room for improvement. Strengthening logistics networks, improving trade infrastructure, and reducing barriers to cross-border trade could help the country deepen its global integration.
The report also highlights positive regional trends. Several African countries, including Namibia and Mozambique, have significantly improved their global connectedness over the past two decades.
International travel has also rebounded strongly since the pandemic. Tourist arrivals in Africa during 2025 were 17% higher than in 2019, making it one of the fastest-recovering regions globally.
Court ruling sends strong warning to taxpayers
In the case Lutzkie v CSARS, the court upheld additional tax assessments and penalties imposed by the South African Revenue Service after a taxpayer failed to properly explain a R1.67 million foreign deposit.
The taxpayer initially claimed the payment was a loan used to cover legal costs. However, the explanation later changed, with the deposit reclassified as a repayment of a shareholder loan from a dissolved foreign company.
The court rejected the shifting explanations, finding that the taxpayer had failed to provide credible and consistent evidence.
Tax specialists say the ruling reinforces a key principle in South African tax law: the burden of proof rests with the taxpayer.
Under the Tax Administration Act, individuals must demonstrate that money received is not taxable income when disputing SARS assessments.
In this case, the court criticised attempts to reconstruct the transaction years later using fragmented documentation and emails.
Judges described the explanations presented as contrived and misleading, concluding that the taxpayer had failed to meet the legal burden of proof.
SARS had imposed a 90% penalty, which the taxpayer argued was excessive. The court rejected the argument, noting that the revenue authority could have imposed a 200% penalty.
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.