JSE FTSE All Share Rises 120 Points Amid Power and Trade Pressures

The JSE FTSE All Share Index (JALSH:JNB) closed up 120.29 points or 0.13% at 92,452.88 ZAR. Despite Eskom’s load-shedding and global geopolitical risks, SA’s main equity index showed some resilience this week.

Eskom Power Constraints Weigh on Sentiment

Eskom is still casting a long shadow over the economy. Though load-shedding has eased from 2023’s record blackouts, it’s still the norm. Businesses are still adapting to the disruptions and investor confidence is low.

Eskom is holding a 0700 GMT press briefing to discuss its winter energy plan. Analysts expect winter demand to surge by 4,000 MW and fears of supply shortfalls are growing. With growth forecasts at 1.2% for 2024, uninterrupted energy supply is key.

Eskom’s 2023 blackouts took off ZAR 300 billion from GDP • Winter could push daily electricity needs to 33,000 MW• Load-shedding is top of mind for institutional investors

JSE LTD Analysis: Price Pullback After Channel Rejection

JSE Ltd shares, a key component of the index, fell 1.8% to ZAR 12,860 after rejecting a key resistance at ZAR 13,239. The stock has been trading inside a rising channel, supported by the 50 EMA at ZAR 12,606. The MACD is still bullish but momentum is fading.

Short term, be cautious. A dip to ZAR 12,686 could be a lower risk buying opportunity. New traders should wait for confirmation and don’t buy near the top of the range.

• Resistance: ZAR 13,239 • Key support: ZAR 12,686 • Stop loss: ZAR 12,480 for tighter risk control

Global Uncertainty and Data Ahead

Investors are also dealing with broader risks. Global markets are on edge over the unresolved U.S.-China trade tensions and the U.S. dollar is weakening ahead of inflation data. Emerging markets like SA are more sensitive to capital flow movements.

Geopolitical hotspots – increased conflict in the Middle East and political instability in the U.S. – are prompting defensive positioning from institutional traders.

Locally, attention now turns to the data that will influence sentiment:

• Tuesday: S&P Global PMI • Thursday: Manufacturing production • Friday: Foreign reserves update

Conclusion:

The JSE’s small gain suggests caution in the face of domestic energy constraints and global headwinds. With JSE Ltd looking short term exhausted and Eskom’s winter plan coming up, this week will set the tone for investor appetite in SA equities.