The JSE All Share Index (Alsi) achieved a historic peak of over 105,000 points on Tuesday, sustaining this position for much of the day before settling at 104,885.
By approximately 9am, the exchange was at 105,486 points, remaining above the significant 105,000 mark until 4:15pm, when it dipped below this key figure.
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ASP Isotopes, which acquired all issued shares of South African onshore gas explorer Renergen in July, led the market with a gain exceeding 6%. Other notable performers included Pan African Resources with a 5.51% rise, MTN up 5.48%, Premier increasing by 4.44%, and Telkom adding 3%.
Peter Little, a fund manager at Anchor Capital, highlighted that this rally is fueled by a limited selection of shares.
“If you exclude gold and PGMs, along with Naspers, Prosus, and the telecoms that have performed well this year, the outlook is quite challenging,” he remarked.
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Gold shares have skyrocketed by 159% year-to-date, contributing 43% to the Alsi’s overall performance. Platinum shares have risen by 118% (with a 14% contribution), while Naspers and Prosus achieved a 43% increase (accounting for a 22% contribution), as noted by Little.
Together, these segments represent 80% of the Alsi’s year-to-date gains, despite constituting only 30% of the index’s total weight.
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Telecoms, up 52% this year, contributed an additional 7% to the Alsi’s performance.
In contrast, discretionary retailers have faced a 23% decline year-to-date, while general retailers have dropped by 5%. Banks (up 9% year-to-date) and insurers (up 10%) have fared relatively well in a challenging operating environment, Little noted.
JSE Alsi
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According to him, South Africa is a significant beneficiary of high commodity prices, which enhance exports and support the economy, though he stressed that the average South African business is encountering difficulties.
“Predicting the future of gold prices is uncertain. It is currently very high. Platinum offers a different scenario due to its industrial demand.”
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Shares in the local market, such as banks and retailers, remain under pressure. “They are also notably undervalued. If we experience an economic boost and improvements, those shares hold promising potential,” Little stated.
Market analyst and creator of the Braaibroodjie Index, Johann Biermann, noted in a post on X that the JSE Alsi has surged over 36% this year in US dollar terms, outperforming emerging markets overall, which have risen by approximately 24%.
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