Brait PLC Eyes ZAC 239 Breakout as Budget Debate Lifts Market Mood

Brait PLC (JSE: BAT) is trading at the brink of a technical breakout as South Africa's long-delayed budget debate injects cautious optimism.

Written by: Arslan Butt • Thursday, June 5, 2025 • 2 min read

• Last updated: Thursday, June 5, 2025

Quick overview

Brait PLC is nearing a technical breakout, closing at ZAC 225, just below a key resistance level at ZAC 226.
The South African budget debate has sparked cautious optimism, with the finance committee set to review delayed fiscal legislation.
Despite positive signals from the May PMI, South Africa's Q1 GDP showed zero growth, highlighting ongoing economic challenges.
Brait's chart indicates a bullish ascending triangle pattern, with potential targets of ZAC 233 and ZAC 239 if it breaks above ZAC 226.

Brait PLC (JSE: BAT) is trading at the brink of a technical breakout as South Africa’s long-delayed budget debate injects cautious optimism into local equity markets. The stock rose 1.35% on the session, closing at ZAC 225—just below a key resistance level at ZAC 226. That movement aligns with a broader mood of hope after Parliament’s finance committee confirmed it would finally review critical fiscal legislation delayed since February.

Investors are closely watching this session, which could mark a turning point in South Africa’s fiscal narrative. The third draft of Finance Minister Enoch Godongwana’s budget—revised to accommodate coalition concerns over tax hikes—has reportedly secured enough backing to move forward.

Meanwhile, the rand gained 0.2% to trade at 17.81/USD, and bond yields dropped modestly, reflecting growing confidence in the country’s economic policy outlook.

Economic Data Sends Mixed Signals

Despite the positive mood surrounding the budget, South Africa’s macro landscape remains mixed. The May PMI showed the fastest business activity expansion in four years, offering a strong signal from the private sector. Yet, Q1 GDP data indicated zero growth, a stark reminder that structural headwinds remain unresolved.

Key figures:

PMI (May): Sharpest uptick in four years
Q1 GDP: 0% growth, vs. 0.3% expected
2035 bond yield: Down 2.5 basis points to 10.085%

These indicators paint a cautious but constructive outlook, allowing room for risk-on trades in local equities like Brait.

Technical Setup Points to Breakout

From a chart perspective, Brait PLC is forming a textbook ascending triangle—a bullish pattern driven by rising demand and repeated resistance tests at ZAC 226. Price action is compressing between this horizontal ceiling and rising trendline support, with the 50-period EMA (ZAC 214) providing further confirmation of upward momentum.

Brait PLC Price Chart - Source: Tradingview — Brait PLC Price Chart – Source: Tradingview

Upside Breakout: A 4H candle close above ZAC 226 opens targets at ZAC 233 and ZAC 239.
Pullback Entry: A retracement to ZAC 220 with a bullish reversal candle (e.g., hammer) offers a second-chance long.
Invalidation: A break below ZAC 212 would invalidate the bullish setup and expose downside toward ZAC 207 or ZAC 202.

With strong fundamentals meeting a constructive technical structure, Brait is positioned for potential upside—pending confirmation. For traders, the key now is patience and discipline.

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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.