Mining slump drags JSE lower as energy stocks surge and policy debates shape economic outlook
The Johannesburg Stock Exchange ended Thursday in negative territory as a sharp sell-off in mining shares dragged the broader market lower, offsetting strong gains in energy and several industrial counters.
The decline came as investors locked in profits in resource stocks following months of strong performance, while energy companies rallied on firmer oil prices and industrial shares found support from technology and consumer-facing firms.
At the same time, developments beyond the trading floor continued to shape the country’s economic narrative. Economists highlighted the growing burden of South Africa’s public debt, the government defended controversial tobacco legislation currently before Parliament, and media group MultiChoice confirmed that its costly Showmax streaming venture will be shut down after years of losses.
The FTSE/JSE All Share Index fell 0.78% to close at 120,167, retreating from Wednesday’s level of 121,114. The market opened stronger at 122,284 but steadily lost ground during the day, trading in a range between 119,579 and 122,284 as selling pressure intensified in mining counters.
Despite the weaker close, the longer-term trend remains positive. The All Share Index is still 18.35% higher for the year and more than 36% higher over the past three years, underlining the strength of the rally that has driven South African equities over the past year.
Resources take the biggest hit
Mining shares were the main drag on the market.
The Resource 10 index dropped 2.45%, with platinum and gold producers leading the declines as investors took profits following a strong run in the sector.
Impala Platinum was the worst performer among the top 100 shares, plunging 7.56% to R272.30. Other platinum group metal producers also came under pressure, with Northam Platinum falling 3.71% to R388.10.
Diversified mining giant Anglo American slipped 0.75%, while several gold producers also ended the day weaker.
AngloGold Ashanti declined 2.68% to R1,795.51, even as the gold price remained firm above $5,100 an ounce in early Friday trade. Harmony Gold fell 3.01%, while African Rainbow Minerals lost 2.75%.
Financial stocks join the decline
Financial shares also ended the day in negative territory.
The Financial 15 index slipped 0.83%, with banks and insurers posting notable losses.
Nedbank dropped 3.52% to R286.15, while insurance group Sanlam fell 5.15% to R95.48, making it one of the day’s weakest performers.
Asset manager Momentum Metropolitan also retreated, losing 2.35% to R37.47.
Financial shares have been volatile in recent sessions as investors reassess the global interest-rate outlook and its implications for economic growth.
Industrials help cushion the fall
Losses on the broader market were partially offset by gains among industrial shares.
The All Share Industrials index rose 0.78%, while the Industrial 25 index gained 0.82%, supported by technology and consumer-oriented companies.
Luxury goods group Richemont added 1.67%, continuing its steady upward trend this year as global demand for high-end goods remains resilient.
Retailer Woolworths was also among the stronger performers, gaining 2.88% to R53.50.
Energy stocks surge
Energy-related shares delivered some of the strongest gains on the exchange.
Coal producer Thungela Resources surged 9.46% to R144.34, making it the top-performing share among the top 100 stocks and reaching a new 52-week high during the session.
Petrochemical giant Sasol also rallied, climbing 4.24% to R144.69 as oil prices firmed.
The broader Oil, Gas and Coal sector rose about 3%, while the Energy sector gained 2.93%, placing them among the best-performing segments of the market.
The gains were supported by stronger crude oil prices, with Brent crude trading around $84.47 per barrel.
Retail sector remains under strain
Not all consumer-focused shares benefited from the day’s gains.
The declines highlight the pressure facing South African retailers as households continue to struggle with high living costs and slow income growth.
Heavy trading in large-cap stocks
Trading activity remained concentrated in a handful of major companies.
AngloGold Ashanti recorded the highest value traded on the day, with more than R2.2 billion worth of shares changing hands.
It was followed by Gold Fields, which recorded R1.57 billion in turnover.
Naspers also saw strong trading activity, with more than R1.5 billion worth of shares traded during the session.
Banking group FirstRand and diversified miner Valterra were also among the most actively traded stocks.
Rand strengthens as commodities hold firm
The local currency has gained ground in recent weeks and is now about 5.38% stronger against the dollar so far this year, although it remains slightly weaker compared with levels a year ago.
Commodity prices were mixed
Government debt remains a key concern
While the market continues to perform strongly over the longer term, economists say South Africa’s rising debt burden remains a central concern for investors.
According to Momentum Investments, if the country’s total government debt were divided equally among citizens, each South African would effectively be responsible for R96,966.
Debt-service costs are expected to reach R432.4 billion in the 2026/27 financial year, making it the third-largest category of government spending. That amounts to roughly R1.2 billion every day spent on interest payments.
Showmax streaming experiment ends
In the corporate sector, a major development came from the media industry.
The service has struggled to compete with global streaming giants despite years of investment.
In the financial year to April 2025, Showmax generated R753 million in revenue but recorded a trading loss of nearly R5 billion. Over the past several years the venture has accumulated billions of rand in losses.
The shutdown highlights the difficulty regional streaming platforms face when competing with global players such as Netflix and Disney+.
Tobacco legislation debate continues
Meanwhile, debate over the Tobacco Products and Electronic Delivery Systems Control Bill continues in Parliament.
The bill proposes stricter controls on smoking in public spaces, tighter regulation of vaping products, and limits on advertising and promotion.
Government officials have indicated that certain definitions in the bill may be revised to distinguish between combustible and non-combustible nicotine products, which could allow some products to be exempt from specific packaging rules.
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