Racing from the Stable to the Stock Market
When Henry and Patricia Devine bought a colt named Jet Master for just R15 000 in 1995, few could have imagined that the bewildered horse standing quietly at the back of a Pietermaritzburg auction would one day become one of South Africa’s most successful racehorses — and a multimillion-rand investment.
Henry was reluctant to bid beyond R10 000, but Patricia insisted, nudging him up to R15 000. That small act of conviction changed their fortunes: Jet Master won 17 races, including the Queen’s Plate twice, and later became a champion sire whose foals dominated local racing.
The story is more than a romantic tale of luck; it’s a reminder that uncertain times and market volatility, belief, and patience often yield better returns than panic.
That sentiment felt especially apt on Monday as investors across the globe took a cautious pause after a robust October rally. Markets steadied, confidence wavered slightly, and many traders — perhaps recalling the Devines’ patience — decided to hold their positions rather than bolt for the exits.
JSE Edges Lower but Momentum Holds
The Johannesburg Stock Exchange (JSE) ended Monday’s session marginally lower, with the All Share Index dipping 0.15% to close at 109 081 points. The modest decline followed several weeks of strong momentum as investors locked in profits amid subdued global sentiment. The day’s trading range reflected limited volatility between 108,624 and 109,915.
Even with a soft close, the JSE has still climbed 18.14% year-to-date and is almost 30% higher than a year ago, reflecting a resilient market supported by solid corporate earnings and steady investor interest in local assets.
Sector and Stock Movers
Resource-heavy counters weighed on the bourse, with the Resource 10 Index falling 1.31%. Major miners such as Anglo American (-2.66%), Gold Fields (-2.36%), and AngloGold Ashanti (-2.33%) dragged the sector lower. In contrast, financial and industrial shares provided balance: the Financial 15 Index gained 0.40%, and the Industrial 25 Index edged up 0.27%.
Among the standout performers were Redefine (+4.63%), Pepkor (+3.45%), and Richemont (+2.14%), lifted by demand for luxury goods. On the downside, Aspen (-4.56%), Karoo (-3.95%), and Spar (-3.43%) led the laggards, highlighting mixed corporate sentiment.
Currency, Commodities, and Global Context
The rand held firm at R17.35 to the US dollar, appreciating 0.25% on the day, supported by solid bond inflows and stable commodity prices. Gold slipped 0.43% to $3 983 per ounce, while Brent crude eased 0.21% to $64.59 a barrel ahead of key central-bank meetings.
Despite the mild pullback, commodity prices remain significantly higher year-on-year, reinforcing South Africa’s trade resilience. Analysts noted that the rand’s stability, relative to many emerging-market peers, reflects foreign confidence in local fundamentals.
Globally, markets were mixed. Japan’s Nikkei slipped to 52,120, while Wall Street indices traded cautiously ahead of US earnings reports. European markets, including the DAX and CAC 40, held firm amid easing eurozone inflation.
In the cryptocurrency space, Bitcoin slipped 0.32% to $106 456, while Ethereum edged up 0.68%. Although short-term sentiment remains volatile, crypto assets continue to outperform traditional markets over the year, with Bitcoin up more than 10% in 2025.
Old Mutual Bank Prepares to Take on Capitec
In the banking sector, Old Mutual is gearing up to launch OM Bank, a new low-cost digital bank positioned to compete directly with Capitec. The institution already has a potential base of seven million South African clients through Old Mutual’s existing network — giving it a major advantage even before its public launch later this month.
The bank will leverage 346 branches and a salesforce of over 2 000, inherited from Old Mutual Finance, to combine physical reach with digital convenience. CEO Clarence Nethengwe described the approach as a “hybrid model” that enables cross-selling between banking, insurance, and investment services — effectively locking customers into Old Mutual’s ecosystem.
Old Mutual has invested R4 billion in the new venture and expects OM Bank to reach profitability by 2028, projecting a client base of 2.8 million active users by then. The insurer expects the bank to run at a loss of R1.1 billion to R1.3 billion over the next three years.
Currently onboarding 5,000 clients per day, the new bank matches Capitec’s pace of expansion, signalling a fierce battle ahead for market share in South Africa’s lower- to middle-income bracket.
Pain for Medical-Aid Members
While investors weigh new opportunities, South African households face renewed financial pressure — particularly on healthcare costs.
According to Alexforbes, most medical schemes have managed to keep 2026 contribution increases below double digits, but one, Sizwe Hosmed, has announced a staggering 19.15% average increase, effective from 1 November 2025.
Sizwe Hosmed was placed under curatorship in September after its reserves dropped to 5.6%, well below the 25% regulatory minimum. The sharp increase, it said, was essential to restore solvency and “correct historical under-pricing.
Other major schemes announced more modest hikes: Momentum (9.9%), Fedhealth (9.6%), Bonitas (8.88%), Medihelp (8.46%), Discovery (7.2%), and Bestmed (6.8%). Discovery’s increase takes effect only from 1 April 2026, reducing its effective annual rise to around 5.4%.
Rising healthcare inflation, 4.7% in August compared to the overall CPI of 3.3%, erodes affordability. Community-rating rules prevent schemes from charging based on age or health status, meaning younger members subsidise older ones. As younger South Africans opt out, schemes are forced to raise premiums further, deepening the cycle.
Alexforbes’ Fazlin Swanepoel said more members are “buying down” or turning to low-cost primary-care products, gap cover, and limited benefit options. But these are not replacements for full coverage.
Consumer research by infoQuest and Decapod paints a sobering picture: 41% of households have cut back on medical aid, insurance, and savings; 85% are spending less on luxuries; and 83% have reduced socialising. Nearly half have cancelled gym memberships, and four in ten have downsized their homes.
Informal borrowing now exceeds formal bank loans, with more than half of respondents struggling to pay their debt.
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.