JSE Soars 554 Points as PMI Hits 4-Year High—Top 40 Stocks Surge

The JSE All Share Index climbed 554.56 points on Tuesday, ending the session at 95,436.86 ZAR, up 0.58%. That gain mirrors investor...

Written by: Arslan Butt • Wednesday, June 4, 2025 • 2 min read

• Last updated: Wednesday, June 4, 2025

Quick overview

The JSE All Share Index rose by 554.56 points, closing at 95,436.86 ZAR, reflecting investor optimism driven by positive macro data.
The Purchasing Managers' Index (PMI) reached a four-year high, indicating a significant recovery from earlier stagnation.
Political progress on the revised budget is boosting investor confidence, with expectations for a favorable outcome in Parliament.
The South African rand strengthened ahead of the budget vote, supported by increased capital inflows and a weakening dollar.

The JSE All Share Index climbed 554.56 points on Tuesday, ending the session at 95,436.86 ZAR, up 0.58%. That gain mirrors investor optimism following upbeat macro data and signs of easing fiscal friction. Traders cheered May’s Purchasing Managers’ Index (PMI), which surged to its highest level since 2020—a sharp reversal from the stagnation that plagued Q1.

The rally was broad-based. Financials, industrials, and mining stocks all participated, supported by solid earnings and growing risk appetite. Even bond markets showed strength: 2035 government bond yields dipped 2.5 basis points to 10.085%, pointing to rising investor confidence in South Africa’s growth outlook.

Key Figures:

PMI: 4-year high
JSE All Share: +0.58%
Bond Yields: -2.5bps to 10.085%

Budget Progress Fuels Investor Optimism

Much of the bullish sentiment hinges on political movement in Parliament. After weeks of uncertainty, Finance Minister Enoch Godongwana’s third draft budget is finally gaining traction. The revised fiscal framework—previously delayed over tax disputes—is now expected to pass, following a growing coalition consensus.

This is good news for foreign investors, who had grown cautious amid fiscal ambiguity. Market participants see the upcoming 0800 GMT committee meeting as pivotal for market direction in June.

Budget Highlights:

Revised May framework up for debate
Focus: revenue plans, spending discipline
Political backing improves passage odds

Rand Firms Ahead of Budget Vote

Currency markets responded favorably. The South African rand strengthened 0.2% to trade at 17.81 per USD, supported by rising capital inflows and a cooling dollar. Traders are positioning ahead of Wednesday’s budget debate, betting on improved fiscal clarity.

JSE Price Chart - Source: Tradingview — JSE Price Chart – Source: Tradingview

For equity markets, that means a stable rand, stronger investor sentiment, and reduced volatility. If the budget clears this week without further delays, the JSE could see extended gains.

What Traders Are Watching:

Budget vote outcome
USD/ZAR trend post-debate
Global risk sentiment and EM flows

Final Thoughts

The 554-point surge isn’t just a flash in the pan—it’s a signal that South Africa may be turning a corner. With macro indicators improving and fiscal certainty on the horizon, markets are rewarding the country’s stability. Still, risks remain. Traders would do well to watch for follow-through in PMI momentum, confirmation of the budget passage, and sustained demand for local bonds.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.