This week, all eyes are on South African markets, as the SA Top 40 is down by approximately 1.6% over the past week. Heading into the weekend, upcoming data releases and international events may shape market movements and determine whether we’ll see a recovery or further slide in the coming days.
Starting with Thursday’s mining production data release, markets expect a modest 0.3% year-over-year growth for South African mining production at 11:30 am. This release often impacts the stock prices of South African miners and other commodity-linked stocks within the Top 40. Should results miss or beat expectations, we could see some pronounced price movement in these stocks, which have shown sensitivity to production output changes.
Adding to this, November 20th marks the SARB's interest rate decision—a critical factor as investors await guidance on local economic policy amid global rate shifts. If SARB chooses to maintain its current stance, the JSE may see a period of stabilising; however, if there's an unexpected rate change, markets could react strongly, either bolstering or further pressuring South African equities.
Meanwhile, ongoing U.S. election developments continue to create uncertainty in global markets. With South African assets like the rand and resource stocks closely tied to global investor sentiment, potential shifts in U.S. policy and market conditions could further impact the JSE.
We would love to hear from you. Take part in our poll on our social media platforms.
Poll Question: Do you think the JSE Top 40 will finish the week higher or lower amid mining data and global election uncertainty?
1. Higher—bullish on mining growth
2. Lower—concerns over global volatility
3. Flat
If you would like to capitalise on these opportunities or manage your risk, please get in touch with me at luke@unum.co.za and Please refer to the disclaimer at https://unum.capital/research-disclaimer/
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