The JSE delivered the strongest performance among major global equity markets in December, with the FTSE/JSE Capped SWIX Index rising by 4.5% MoM. In US dollar terms, the JSE’s 61.2% YoY return in 2025 was only bested by one other major global bourse – Spain’s IBEX 35 Index, which gained 76.1% in US dollar terms.
Precious metal miners have contributed significantly to JSE returns in 2025, with gold and platinum miners responsible for c. 60% of its 2025 performance. The precious metal miners’ aggregate performance for the year (up 208% and 222%, respectively) has tracked the spike in precious metal prices (gold +65% YoY, platinum +127% YoY). December was no exception to this theme, with platinum miners rising by 16% MoM, driven higher by a surge in the platinum price (+23% MoM). The jump in the platinum price reflects the metal’s stronger potential future industrial demand, particularly in the automotive space. This follows the EU’s decision to soften its stance on plans to ban combustion engines from 2035, as well as a surge in financial activity related to the launch of the first platinum futures contract in China.
In contrast to much of 2025, which saw lacklustre performances from JSE-listed companies with earnings geared to the domestic economy, this cohort contributed meaningfully in December. Banks (+10% MoM) and insurers (+5% MoM) boosted performance, though the retailers continued to struggle, with discretionary retailers (-2.5% MoM) ending a forgettable year (-26% YoY), and general retailers (-2.5% MoM/-9.6% YoY) also disappointing.
The South African government’s 10-year borrowing rate ended 2025 at 8.2% p.a. – the lowest it has been since before former finance minister Nhlanhla Nene was fired slightly more than a decade ago. The government’s 10-year borrowing rate dropped by 0.3% in December, having declined by more than 2% p.a. over the course of 2025. As a result, the FTSE/JSE All Bond Index returned 2.7% MoM and 24.2% for the year.
The rand was also a standout performer in December, rallying 3.3% against a weak US dollar to make it the best-performing major currency for the month. The strong year-end rally pushed the local currency to a 13.8% gain against the greenback in 2025, with the local unit ending the year at R16.56/US$1, as strong as the rand has been since 2022.
