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- JSE top 40 retreats from 85K as tech surges 14%; rate cut hopes linger.
South African stocks showed signs of fatigue on Wednesday as the JSE FTSE Top 40 Index slipped 0.28% to 84,915.47, retreating from recent highs above the key 85,000-point threshold. While the market’s rally appears to be pausing, sector performance remained mixed, with 12 of 20 sectors advancing.
Sector Highlights
- Electronic Technology led gains, surging 14.36%
- Producer Manufacturing (+4.26%) and Technology Services (+2.26%) also climbed
- Transportation & Utilities showed resilience
- Health Technology (-2.03%) and Non-Energy Minerals (-1.58%) lagged
Key Stock Moves
- Naspers (+1.93%) and Capitec Bank (+1.01%) gained
- FirstRand and Standard Bank Group declined
- Investec dipped 0.15% despite progress in its energy trading ambitions
Investec’s Energy Push
The financial group applied to NERSA for an electricity trading license, signaling its expansion into renewable energy markets. The move aligns with South Africa’s energy liberalization and could drive long-term growth, though the stock saw muted reaction.
Macroeconomic Backdrop
- BankservAfrica Transaction Index declined in April, signaling weak economic activity
- Inflation remains low at 2.7%, increasing expectations of interest rate cuts
- Global uncertainties and sluggish local growth persist, but monetary easing could support equities
Market Outlook
While short-term pullbacks are possible, select sector strength and potential rate cuts provide a cautiously optimistic outlook.
