The JSE did enough in April (FTSE/JSE Capped All Share +1.6% MoM) to nudge the bourse back into positive territory for the year (+1.2% YTD). Investment companies Naspers and Prosus (+4% MoM) contributed positively as they began to claw their way back from a tough start to the year (-23% in 1Q26). Diversified miners, Anglo American (+12.8% MoM) and BHP Group (+8.5% MoM) were among the top performers on the JSE in April, helped by a rally in industrial metals (copper +5.3% MoM). Banks (+4.6% MoM) were another strong contributor to JSE returns in April. However, weakness in precious metal miners shaved more than 1% off April’s index performance (gold miners -4.7% MoM; platinum miners -4.1% MoM) as the gold price (-1.1% MoM) fell for a second consecutive month.
At a stock level, Clicks (-9.2% MoM) saw its share price fall despite releasing results that showed 1H26 headline earnings per share rising by 8.1% YoY. Still, management delivered disappointing guidance for full-year earnings growth (4% to 9%) as they factor in the impact of higher energy costs on margins and consumer spending. There was a large divergence in performance within the telco sector, with MTN (+9.6% MoM) faring significantly better than Vodacom (-2.1% MoM). MTN benefitted from an exceptional operating performance from its key markets, Nigeria and Ghana, which both reported strong 1Q26 results during April.
The rand strengthened against the US dollar (+1.6% MoM), leaving it marginally weaker against the greenback YTD (-0.7%). The US dollar was weaker against most major currencies in the month as the positive investor sentiment enticed investors away from the relative safety of the US currency. The SA government’s 10-year borrowing rate ended April back below 9% (8.9% p.a.). The local bond yields fell despite generally higher global bond yields as investors started to weigh up the potential inflationary impact of energy prices remaining higher for an extended period.
The latest SA inflation print (+3.1% YoY) for March was in line with expectations and hovering around the SA Reserve Bank’s (SARB’s) new 3% inflation target. However, this data is yet to reflect the recent energy price spikes, which are expected to push the SARB back into rate-hiking mode.
