JSE UPDATE

State of the JSE!The Johannesburg Stock Exchange has been making headlines again, and for once the news is more encouraging than many South Africans have come to expect. As of mid-June 2026 the FTSE/JSE All Share Index sits comfortably above the 115,000 mark. That represents a gain of roughly 21 per cent compared with the same time last year. After a strong 2025, when the index surged more than 38 per cent on the back of soaring gold and platinum prices, the market has continued to show resilience even as global conditions remain uncertain.For everyday investors watching their pension funds or unit trusts, these numbers matter. A year ago many were still feeling the pinch of slower growth and load shedding worries. Today the picture looks brighter, at least on paper. Mining shares, particularly those tied to precious metals, have carried much of the rally. Companies such as AngloGold Ashanti and Gold Fields have delivered impressive returns, lifting the entire resource sector and helping the broader market push higher. The Top 40 index has followed a similar path, underlining that the gains are not confined to a handful of stocks.Yet the story is not one of unbroken triumph. While the JSE has outperformed many global peers in recent months, large parts of the market still feel the pressure of a domestic economy that refuses to fire on all cylinders. Retail and banking shares have been more mixed. Property counters continue to wrestle with high interest rates and weak consumer spending. For ordinary South Africans hoping their investments will fund a decent retirement or help pay for university fees, the message is clear: the JSE is improving, but it remains heavily dependent on commodity cycles and external factors.Compare the situation with a year ago and the progress is undeniable. The index has broken through the 100,000 level and touched all-time highs in recent memory. Market capitalisation now exceeds R24 trillion, cementing the JSE’s position as Africa’s largest and most liquid exchange. Trading volumes have held up reasonably well, and the exchange itself reported solid financial results for 2025 with double-digit growth. Foreign investors have returned in fits and starts, drawn by attractive dividend yields and the rand’s relative behaviour.Still, the JSE could be doing a great deal better. The market’s performance has been propped up by a handful of big resource names rather than by broad-based economic strength. Unemployment remains stubbornly high, growth forecasts are modest, and infrastructure challenges have not vanished overnight. Stronger political leadership and clearer policy direction would give local companies and investors the confidence to expand, invest, and hire. Without that, the JSE risks remaining a tale of two markets: one thriving on global commodity demand, the other held back by what happens inside our borders.For the average person the takeaway is straightforward. Your investments on the JSE have likely done better over the past twelve months than you might have feared. Diversification still matters, especially with global events capable of shifting sentiment quickly. Those with exposure to mining shares have reason to smile, while those heavier in domestic-focused companies may be waiting for the domestic recovery to catch up.The JSE is not in a bad position. It is improving, and the numbers prove it. But real, lasting gains for all South Africans will only come when the wider economy starts delivering the kind of consistent growth that turns a decent stock market into an outstanding one. Until political and economic leadership matches the resilience shown by the market itself, we remain a country with tremendous potential that is still waiting to be fully unlocked