June 2026 Market Update: South African Markets Continue to Show Resilience

As we close out June, South African financial markets continued to demonstrate resilience despite ongoing global uncertainty. While investors remained mindful of geopolitical tensions, inflation trends, and interest rate expectations abroad, the local market benefited from improved investor confidence, stronger commodity prices, and encouraging economic data.

Understanding what drove markets this month can help investors remain focused on their long-term financial objectives while navigating short-term market movements.

JSE Performance in June

The Johannesburg Stock Exchange (JSE) delivered another positive month, supported primarily by resource companies, financial shares, and selected industrial stocks. Improved commodity prices, coupled with continued foreign investor interest in South African assets, helped lift overall market sentiment.

Mining companies benefited from firmer prices in precious metals and industrial commodities, while several banking groups continued to post solid earnings expectations as South Africa's interest rate environment remained supportive of profitability.

The rand remained relatively stable throughout the month despite global volatility, reflecting renewed confidence in South African assets and easing concerns around domestic fiscal risks.

Key Drivers of the Local Market

Commodity Prices

Higher prices for gold, platinum group metals and selected industrial commodities provided meaningful support to the resource sector. With ongoing geopolitical uncertainty and continued global demand for safe-haven assets, mining companies remained one of the strongest contributors to JSE performance during June.

Interest Rate Expectations

South African inflation has continued to trend within the South African Reserve Bank's target range, increasing expectations that interest rates may remain stable or gradually ease later this year should inflation remain contained. Lower borrowing costs would be supportive for both consumers and businesses.

Improved Investor Confidence

Continued progress on structural reforms, improved electricity availability compared to previous years, and greater policy certainty have helped improve investor sentiment towards South African equities.

South African Economic Snapshot

Several important economic indicators released during June painted an encouraging picture for the local economy.

Inflation

Inflation remained well contained within the Reserve Bank's target range, providing consumers with some relief from the elevated cost-of-living pressures experienced over the past few years. Stable inflation also gives policymakers greater flexibility when considering future interest rate decisions.

Economic Growth

While economic growth remains modest, several sectors continue to show signs of improvement. Mining, financial services and tourism have remained important contributors to overall economic activity, while ongoing infrastructure investment continues to support longer-term growth prospects.

Consumer Spending

Consumers remain cautious, but stable employment levels and easing inflation have helped support spending across essential goods and services. Lower inflation has also improved household purchasing power compared with previous years.

Sector Highlights

Resources

The resource sector was once again among the strongest performers during June. Gold miners benefited from elevated gold prices, while platinum group metal producers experienced improved investor sentiment as demand expectations stabilised.

Financials

South African banks continued to perform well as higher interest margins and resilient credit quality supported earnings expectations. Financial stocks remain an attractive source of dividend income for long-term investors.

Industrials

Industrial companies delivered mixed performance, with logistics, retail and consumer-focused businesses continuing to benefit from improving operating conditions and more stable electricity supply.

Listed Property

The listed property sector remained resilient as investors continued to favor assets offering attractive income yields. Expectations of stable or lower interest rates have also supported valuations across the sector.

Global Market Overview

International markets experienced a more mixed month.

In the United States, equity markets continued to trade near record highs as investors remained optimistic about artificial intelligence, corporate earnings growth and the prospect of future interest rate cuts. However, markets remained sensitive to inflation data and comments from the US Federal Reserve regarding the timing of any policy changes.

European markets posted modest gains as inflation continued to ease across much of the region, while economic growth remained subdued.

Asian markets delivered mixed results. Japan continued to benefit from improving corporate earnings and shareholder reforms, while China's slower economic recovery and ongoing property sector challenges weighed on investor confidence.

What This Means for Investors

While short-term market movements can create uncertainty, June reinforced several important investment principles:

• Remain diversified. Exposure across South African and global markets continues to reduce portfolio risk while creating opportunities for long-term growth.

• Focus on long-term objectives. Market volatility is a normal part of investing and should not distract from a well-constructed financial plan.

• South African equities continue to offer value. Attractive dividend yields and reasonable valuations remain compelling for long-term investors.

• Global diversification remains important. International investments continue to provide exposure to industries and companies that are not available on the local market.

Looking Ahead

As we move into the second half of 2026, investors will continue to monitor inflation trends, interest rate decisions, global geopolitical developments and corporate earnings. While periods of volatility are likely to persist, maintaining a disciplined investment approach remains the most effective strategy for building long-term wealth.

At ReWealth, we remain committed to helping our clients navigate changing market conditions with confidence. Regular portfolio reviews and maintaining a diversified investment strategy remain the cornerstone of successful long-term investing.

If you have any questions about your portfolio or would like to review your financial plan, please don't hesitate to contact your ReWealth financial advisor.