The FTSE/JSE Africa All Share index is up more than 7% in dollar terms this year, compared with declines of 1.4% for the MSCI Emerging Market stock index and 8.3% for the S&P 500.(Supplied/JSE)
South Africa’s benchmark stock index headed for a record close as the surging gold price boosted shares of the country’s precious-metals miners.
The FTSE/JSE Africa All Share Index rose as much as 1.1% on Wednesday, on track for a fifth consecutive day of gains. It has wiped out a near -10% slide that followed US President Donald Trump’s announcement of so-called reciprocal tariffs.
The South African gauge is up more than 7% in dollar terms this year, compared with declines of 1.4% for the MSCI Emerging Market stock index and 8.3% for the S&P 500.
Bullion hit a fresh high on Wednesday on haven demand as the dollar fell and tech stocks slumped after Trump’s administration imposed new restrictions on Nvidia Corp.’s chip exports to China amid deepening trade tensions.
As a result, there’s been a “flight to safety, gold,” said All Weather Capital portfolio manager Chris Reddy.
Gold miners were the biggest gainers in Johannesburg on Wednesday, with a subindex of nine precious-metal producers climbing as much as 7.2% to an all-time high. Harmony Gold Mining and AngloGold Ashanti climbed over 7% each. Gold Fields was up as much as 9.4%.
The dollar’s decline to a six-month low against major peers has also boosted spot prices for commodities including gold and platinum-group metals, Reddy said. Platinum miners were among the top performers in Johannesburg, with Impala Platinum rising more than 5% and Sibanye Stillwater jumping 8%.
South African precious-metal producers may extend gains in the coming months as higher gold prices boost returns, according to Scotia Capital.
“We expect return on invested capital to increase to about 15% at gold spot prices of $3,220 per ounce for 2025, which could increase with higher prices of the precious metal this year,” analysts including Tanya Jakusconek wrote in a note.
