South African Markets Rise as Households Brace for Cost Increases
South Africa’s stock market recovered on Monday, with the FTSE/JSE All Share Index rising 1.43% amid gains in key shares, while households face rising costs from electricity and fuel price increases. Pensioners of the Government Employees Pension Fund (GEPF) are set to receive a 3.5% increase from April, but students are under pressure as online gambling consumes NSFAS allowances.
Market Indices Show Broad-Based Gains
The FTSE/JSE All Share Index closed the day at 116,562, up 1,638 points from Monday’s open of 115,576. During the session, the index traded between 114,320 and 116,982.
Other major indices also advanced. The All Share Industrials rose 1.48 %, while the Mid Cap Index gained 2.33 %. The Small Cap Index increased 0.95 %. The Industrial 25 climbed 1.45 %, the Financial 15 rose 1.46 %, and the Resource 10 advanced 1.49%. The Top 40 Tradeable Index recorded a 1.50 % increase, while the SA Property Index rose 1.26 %.
Investors were particularly focused on MTN Group, which led the day’s gains, rising 7% to R195.72. Implats followed with a 6.89% increase to R256.89, while Northam climbed 5.79% to R365.64. Other notable performers included Spar, Boxer, and Sibanye-Stillwater.
On the downside, TFG lost 3.28% to R70.77, South32 fell 2.59% to R50.31, and Bytes dropped 2.43% to R66.34.
Sectors Driving the Rally
Sector performance showed strength in telecommunications, travel and leisure, industrial transportation, and alternative energy. Telecommunications shares posted the largest gains, lifting overall market sentiment. Analysts noted that rising demand for connectivity and mobile services, combined with positive earnings reports from major telecom operators, helped support the sector.
Travel and leisure stocks benefited from increased domestic and international travel activity, while industrial transportation companies posted solid gains on expectations of stronger freight volumes. Alternative energy firms saw moderate gains, reflecting growing investor interest in renewable energy investments and infrastructure development.
Rand Strengthens Amid Mixed Commodity Performance
Commodity prices were mixed. Gold dipped slightly to $5,002.27 per ounce, while silver rose to $80.96. Platinum climbed to $2,108.20, and palladium traded at $1,603.56. Brent crude oil declined to $101.99 per barrel, reflecting concerns about global demand and supply adjustments.
Globally, markets were largely steady. The Nikkei 225 in Japan closed slightly lower at 53,751, European indices were mostly flat, and the S&P 500 and Dow Jones Industrial Average in the United States ended with little change. Cryptocurrencies posted gains, with Bitcoin at $73,663.70 and Ethereum at $2,285.79.
Eskom Tariff Hike Adds Pressure on Households
The hikes follow approval by the energy regulator, Nersa, for Eskom’s Retail Tariffs and Structural Adjustment application submitted in February. Municipalities have until 31 March to submit tariff applications, with public consultation running until 21 April. Final tariffs will be announced by 11 May.
Eskom said the increase is necessary to maintain a stable electricity supply and covers the costs of generation, transmission, and distribution while supporting investment in infrastructure. The increase comes alongside rising fuel prices, with petrol climbing above R4 per litre and diesel exceeding R7 per litre, amplifying the financial burden on households.
The utility noted that achieving reasonable future tariff increases depends on disciplined financial management and operational efficiency. Nersa considered both affordability and the long-term sustainability of the electricity system when approving the tariffs.
Students’ NSFAS Allowances at Risk from Online Gambling
The National Student Financial Aid Scheme (NSFAS) has raised concerns about students using allowances for online gambling, particularly on illegal or offshore platforms. The scheme is partnering with the National Gambling Board (NGB) to raise awareness of gambling risks and protect public funds.
Tech expert Siphumelele Zondi noted that sports betting and “Vegas-style” online games are particularly popular among students, who often reinvest winnings and lose funds entirely. Data from the NGB shows that R1.5 trillion was wagered in South Africa in 2024, with online gambling as the main driver of growth.
Standard Bank chief economist Goolam Ballim said spending on online gambling could undermine household finances and long-term economic growth. Surveys indicate that half of South Africans spend up to R500 on gambling monthly, with nearly a third spending more than R2,350. Much of this revenue flows offshore, generating minimal tax revenue or employment locally.
Ballim warned that gambling represents a redistribution of income rather than economic growth, diverting money from essential spending on goods and services, which would otherwise support jobs and local business activity.
Pensioners Receive GEPF Increase
Pensioners of the Government Employees Pension Fund (GEPF) will receive a 3.5% increase, effective 1 April 2026. The adjustment applies in full to those who retired on or before 1 April 2025, while newer pensioners will receive a prorated adjustment based on the number of months they have been receiving their pension.
The increase aligns with the year-on-year Consumer Price Index for November 2025 and exceeds the 75% base adjustment required under GEPF rules. The fund said the adjustment balances protecting pensioners’ purchasing power with maintaining the fund’s long-term stability.
The GEPF emphasised that the decision reflects its commitment to ensuring pensioners can maintain their standard of living amid rising living costs, while keeping the fund financially sustainable.
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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.
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