JSE Top 40 Hits 89,167 as Budget Fuels Stock Trading Surge in South Africa

The JSE Top 40 Index rose to 89,167 on Wednesday and then settled near 88,876 as South Africa’s long awaited budget cleared parliament.

Written by: Arslan Butt • Thursday, June 5, 2025 • 1 min read

• Last updated: Thursday, June 5, 2025

Quick overview

The JSE Top 40 Index rose to 89,167 before settling at 88,876, marking a 0.9% gain following the approval of South Africa's budget.
Investor confidence is increasing as global asset managers expand in the region, reflecting a positive outlook on South Africa's economic recovery.
Despite local market gains, the rand weakened to 17.8425/USD ahead of the Q1 current account release, with expectations of a widening deficit.
Technically, the JSE Top 40 is in an uptrend, with immediate resistance at 89,157 and potential upside targets of 89,583 and 90,019.

The JSE Top 40 Index rose to 89,167 on Wednesday and then settled near 88,876 as South Africa’s long awaited budget cleared parliament. The approval boosted confidence in fiscal discipline and gave a tailwind to the market across all sectors, resulting in a 0.9% gain – the biggest single day gain in weeks.

After weeks of political bottlenecks, with fiscal clarity back, investors are showing fresh appetite for risk. Global asset managers like Ninety One are expanding their presence in the region, a sign of growing confidence in the South African story.

Meanwhile the 2035 government bond yield eased to 9.991% as fixed income markets are cautiously optimistic with the stock market performance.

Rand Slips Ahead of Q1 Current Account Release

Despite the local market gains, the rand weakened to 17.8425/USD on Thursday. The dip comes ahead of the Q1 current account release from the South African Reserve Bank.

Key expectations:

Current Account Deficit: 0.9% vs 0.4% in Q4 2024
Trade Surplus: Shrinking due to weaker exports
Capital Flows: Income deficit may offset the gains

The currency is down but markets are focused on the macro tailwinds from the budget and overall recovery sentiment.

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

JSE Top 40 Technical Outlook: 89,157 Breakout

Technically the JSE Top 40 (SA40) is in an uptrend within an ascending channel. Price has broken through the 88,518 resistance – now support – and is consolidating below the 89,157 ceiling.

Immediate Resistance: 89,157
Upside Targets: 89,583 and 90,019 (psychological level)
Key Support: 88,518 and channel midline near 87,869
MACD: Bullish crossover with histogram expansion

A 2-hour close above 89,157 could trigger a new leg higher. Alternatively a pullback to 88,518 with a bullish engulfing or hammer candlestick could be a second chance long entry.

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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.