The JSE was the best-performing major equity market in August (FTSE/JSE Capped All Share +4.6% MoM), stringing together a second consecutive positive month to drag it back into positive territory for the year (+2.8% YTD). In a theme reminiscent of 2025 and the first couple of months of 2026, it was the precious metals miners doing all the heavy lifting, while the rest of the bourse struggled. Gold miners (+38% MoM) added 5% to the JSE’s August return as the gold price (+9.7% MoM) bounced meaningfully for the first time since February. Platinum miners (+21.6% MoM) were the other main contributor to the JSE’s performance for the month, following a 9% MoM rally in the platinum price.
Outside of the precious metal miners, the only meaningful positive contributions for August came from Shoprite (+7.4% MoM), OUTsurance (+6% MoM) and ADvTECH (+5% MoM). Shoprite guided to 10%-15% YoY headline earnings per share (HEPS) growth, with most analyst expectations at the bottom of that range. OUTsurance guided to normalised EPS growth of 15%-21% YoY, also well ahead of analyst expectations. ADvTECH reported a 16% YoY rise in 1H26 normalised EPS as enrolment growth, higher fees and improved collections lifted margins.
There were once again a few retailers amongst the worst-performing stocks on the JSE, including SPAR (-20% MoM), which has now shed almost two-thirds of its market value over the past year. The latest woes for the food retailer were the resignation of Chair Mike Bosman and his deputy (Shirley Zinn), citing sustained personal attacks and threats from retailers as the driving force for their decision. JSE-listed companies with predominantly offshore earnings were another source of pain in August, with a strong local currency (rand +2.6% MoM vs the US dollar) adding a headwind. AB InBev (-10% MoM) and British American Tobacco (-11% MoM) are amongst the out-of-favour consumer staples sector, which tends to struggle in an environment when global rates are elevated. Investment conglomerates Naspers (-9% MoM) and Prosus (-6 % MoM) had their currency headwind exacerbated by exposure to the struggling Chinese stock market (via their investment in Chinese tech conglomerate Tencent, which fell 4.7% MoM and has shed one-quarter of its market value YTD).
South Africa’s (SA) latest inflation data saw core inflation at 4.2% YoY, meaningfully above the 3% YoY level reported in March and the SA Reserve Bank’s new 3% inflation target. The SA 10-year borrowing rate was unchanged for August (8.75% p.a.). The rand’s 2.6% MoM rally against the US dollar left it as the second-best-performing major currency for the month, behind the Korean won (5.3% MoM).
