JSE Top 40 Pulls Back to 110,500 as Ceasefire Relief Rally Faces Profit-Taking – Rebound or Deeper Dip Ahead?
The FTSE/JSE Top 40 Index is trading around 110,494, down by nearly 1.1% or about 1,171 points so far this morning on April 9...
Quick overview
- The FTSE/JSE Top 40 Index is currently trading at 110,494, down 1.1% from the previous day.
- A recent relief rally following a US-Iran ceasefire announcement boosted the index by 4.16% to 111,665 before today's decline.
- Geopolitical factors and the strength of the Rand are influencing market sentiment and stock performance, particularly in resource-heavy sectors.
- Technical analysis suggests that as long as the index remains above 110,000, bullish momentum is intact, with key resistance levels at 112,125 and 114,450.
The FTSE/JSE Top 40 Index is trading around 110,494, down by nearly 1.1% or about 1,171 points so far this morning on April 9, 2026. It opened right around where it closed the previous day, at around 111,665, and is currently bouncing around in a range between 110,340 and 111,665.
Recent Price Action
The Top 40 Index had quite a ride – closing up 4.16% at 111,665, after a relief rally really took hold following the US-Iran announcement of a two week ceasefire. This deal which includes reopening the Strait of Hormuz is going to lift some of the pressure on world oil supplies, and has really shifted the risk appetite in favour of global investors. Volume was really high on the day, with a reported 329 million shares changing hands.
The day before that – the 7th of April – the index had dropped by 1.04% to 107,203, as concerns about rising oil prices and a weakening Rand, bit hard. The bigger picture ALSI Index actually followed a similar path, closing on the 8th at 119,524 after gaining a healthy 3.96%, before stepping back a bit today.
The Top 40 is still some way below its 52 week high of 121,330, but it’s still showing some very healthy long term gains – roughly 40-48% over the past 12 months.
Key Drivers Today
- Geopolitics : The fragility of this deal is reducing the so-called “war premium” in oil, which has lifted the value of riskier assets. However, lingering concerns over potential breaches, and a very short 2 week time frame are triggering some profit taking, and causing the price to pull back a bit.
- Rand & Commodities : The Rand has been sensitive to changes in global risk appetite. The ceasefire has offered some help, but if the Rand gets stronger that could mute some of the gains for exporters, and that would hurt a lot of resource heavy stocks. Mining and energy stocks, particularly Sasol which is so heavily exposed to oil, are always worth watching.
- Broader Sentiment : The good news is global flows of money into riskier assets are lifting emerging markets, but caution about how long this truce will last is limiting the upside. There arent any major domestic news releases driving the market today.
FTSE/JSE Top 40 Technical Analysis
The Top 40 is trading close to 110,508 after it rejected the 114,450 resistance zone. Now price is heading back towards the rising trendline, and the 50-day moving average near 109,500 – which is providing some immediate support.
The construct of the market is still looking pretty good, with higher lows since late March painting a picture of a strong underlying trend. As long as price stays above 110,000 the bulls are still in the driving seat. If it drops below 109,500 though, that could open the door to a fall to 107,750 and 105,150. On the upside, getting back above 112,125 would look to 114,450 and beyond to 116,500.
The Relative Strength Index (RSI) has cooled off a bit to between 50 & 55, which is starting to look like a bit of a momentum reset.
Trade Idea: Buy near 109,500, looking to target 112,100 and 114,400, but stop the losses below 107,700.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
- Read our latest reviews on: Avatrade, Exness, HFM and XM
Related Articles
Sidebar rates
Related Posts
Save
