Stronger Rand Boosts Travel, Spurs Gains on South African Markets as ARM Sees Leadership Shift
South Africans are finding their travel budgets stretch further as the rand strengthens, making destinations like Mauritius, Thailand, Hungary, Turkey, and the Czech Republic more affordable.
Current rates mean R1 buys 2.87 Mauritian rupees, 1.96 Thai baht, 4.79 Hungarian forints, 2.74 Turkish lira, and 1.28 Czech koruna. This translates into cheaper flights, hotel stays, meals, and transport, allowing travellers to enjoy more value while overseas.
The rand’s gains in 2026 have been significant. It has strengthened 15.1% against the US dollar year-on-year, 1.4% against the euro, 5.2% against the British pound, and 8.8% versus the Chinese yuan. Analysts attribute the gains to structural reforms, tighter fiscal management, high global metals prices, and relatively low oil costs, all of which have improved South Africa’s terms of trade and attracted foreign investment.
South African Equities Rise on Financial and Property Gains
South African equities closed firmer on Monday, with the FTSE/JSE All Share Index advancing 0.34% to 120,989. The market opened at 120,545 and traded within a narrow range of 120,545 to 121,552, holding onto early gains to finish positive.
Financial and property stocks drove the advance. The Financial 15 index rose 0.90%, while listed property shares gained 1.06%. Industrial shares also contributed, with the All Share Industrials up 0.35% and the Industrial 25 rising 0.30%.
Resource counters lagged, with the Resource 10 index falling 0.32% as mining shares faced selling pressure.
Notable gainers included Telkom, up 6.09%, with Momentum and Outsurance both rising more than 2%. Boxer and Clicks also posted gains. On the downside, Thungela fell 5%, while Mondi plc, DRDGold, and Sibanye-Stillwater were weaker, weighing on the resources segment.
Large-cap counters delivered mixed results. Naspers and Prosus recorded modest gains, while Anglo American, AB InBev, Richemont, and Glencore closed lower.
Market momentum remains positive across multiple time frames. The All Share is up 0.78% over one month, 0.68% over three months, and 7.72% over six months. Year-to-date gains stand at 18.67%, with three-year returns of 36.87% and five-year gains of 52.63%, showing sustained market growth in 2026.
Patrice Motsepe Steps Down as ARM Executive Chairman
In corporate news, South African billionaire Patrice Motsepe retired as executive chairman of African Rainbow Minerals effective 16 February 2026. Motsepe will continue as non-executive chairman and board director, in compliance with JSE listing rules that prevent the chair from serving as an executive director.
David Noko remains the lead independent non-executive director, and Jacob van der Bijl has been appointed ARM’s new Chief Operating Officer. Motsepe welcomed van der Bijl, highlighting his extensive experience in mining. Motsepe reaffirmed the company’s commitment to creating value for shareholders and stakeholders.
Motsepe, South Africa’s only black dollar billionaire, also holds significant stakes in Sanlam, ARC (TymeBank), and Mamelodi Sundowns, and serves as president of the Confederation of African Football (CAF).
He is a major donor to the ANC and brother-in-law to President Cyril Ramaphosa, though he has previously stated he has no political ambitions.
Reserve Bank Holds Rates Amid Stable Inflation
The South African Reserve Bank maintained the repo rate at 6.75% on Monday, keeping the prime lending rate at 10.25%. The central bank noted that headline consumer price inflation for December 2025 was 3.60%, with CPI excluding owner-occupied rent at 3.60% for January 2026.
The Reserve Bank emphasised that current monetary policy remains appropriate amid stable inflation, resilient domestic demand, and ongoing monitoring of global economic conditions. The decision to hold rates reflects an effort to balance price stability with support for economic growth.
Analysts pointed out that the steady rates provide certainty for borrowers and investors, and signal the central bank’s commitment to carefully calibrated monetary policy.
The SARB’s statement also highlighted that while inflation pressures remain moderate, external factors such as oil prices and global interest rates will continue to be closely monitored.
Sector and Share Performance
Among sectors, alternative energy led gains, up 2.69%, followed by non-life insurance, which rose 2.19%, with life insurance adding 1.68%, while telecommunications and telecom service providers each gained 1.59%.
Commodities and Global Markets
Commodity prices softened on Monday. Gold fell 0.77% to $4,954 per ounce, with platinum and palladium also lower. Brent crude declined slightly to $68.26 a barrel.
Global markets were mixed, with Asian indices lower and European markets steady. In the U.S., major indices were mostly flat.
Cryptocurrencies moved in a narrow range, with Bitcoin down 0.31% to $68,276, Ethereum up 0.23% to $1,992, and other major coins fluctuating within 1–2%.
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