JSE FTSE All Share Index Falls as Weak Rand and Mining Stocks Weigh on Sentiment

Despite the bullish Gold price, the JSE FTSE All Share Index (JALSH), which tracks the overall performance of the largest companies...

Written by: Arslan Butt • Wednesday, July 8, 2026 • 2 min read

• Last updated: Wednesday, July 8, 2026

Quick overview

The JSE FTSE All Share Index is experiencing a bearish trend, trading at 109,373 ZAR with a 0.86 percent loss in the last 24 hours.
The decline in South Africa's foreign reserves has negatively impacted market sentiment, contributing to the index's downward movement.
Major gold mining stocks, including Harmony Gold and Gold Fields, are underperforming, further pressuring the JSE Index despite bullish gold prices.
Geopolitical tensions in the Middle East are causing investors to seek safer assets, adding to the cautious sentiment surrounding the JSE market.

Despite the bullish Gold price, the JSE FTSE All Share Index (JALSH), which tracks the overall performance of the largest companies listed on the Johannesburg Stock Exchange, started the day on a bearish track. During the early European trading session on Wednesday, the index is trading at 109,373 ZAR, showing 0.86 percent losses in the last 24 hours.

The main reason behind this modest bearish trend can be attributed to the weaker South African currency, which lost its traction after central bank data showed a decline ‌in the country’s foreign reserves last month.

South Africa’s net foreign reserves fell to $71.34 ⁠billion at the end of June from $73.47 billion in May. The news hurt market sentiment and added pressure on the JSE Index.

Although the losses in the JSE FTSE All Share Index could be short lived as the US dollar turns lower as bulls opt to lighten their bets ahead of the release of the June FOMC meeting Minutes. Hence, a bearish US dollar was seen as a positive for the JSE Index as it improves investor sentiment in emerging markets and can support JSE index.

Gold Mining Shares Push the JSE Index Lower

Another factor that is putting pressure on the JSE index is the bearish performance of the major gold mining stocks. On Wednesday, Harmony Gold Mining was trading at 24,880.00, showing 1.58 percent losses, while Gold Fields was trading at 54,462.00, showing 1.40 percent losses.

At the same time, AngloGold Ashanti was trading around $84 in the US market. Since these are some of the biggest mining companies on the JSE index, their poor performance pushed the index lower and outweighed the support from higher gold prices.

US Dollar Weakens Despite Fed Rate Hike Expectations

On the US front, the broad based US dollar is showing mixed performance during the European trading session on Wednesday. At the time we are writing this, the Dollar Index, which measures the greenback’s strength against a basket of six currencies, traded at 100.73, showing modest losses of 0.05 percent.

Despite the high chances of a Fed rate hike and heightened tensions in the US and Iran conflict, the US dollar failed to gain traction in this session. This is because traders seem cautious to place any strong position ahead of the release of the June FOMC meeting Minutes.

According to the CME FedWatch Tool, there is more than an 80 percent chance that the Fed will increase interest rates by 25 basis points before the end of the year. Hence, the expectations of a hawkish tone pushed US Treasury yields higher and helped the US dollar to limit its losses. As of now, the 10-year yield rose to 4.567 percent and the 2-year yield reached 4.189 percent.

Growing Middle East Tensions Hurt JSE Market Sentiment

On the geopolitical front, the long lasting tensions in the Middle East did not show any sign of slowing down; in fact, it increased further after the US launched new military strikes on Iran following reports that three oil tankers were attacked in the Strait of Hormuz.

This was seen as negative news for the JSE Index because rising geopolitical tensions made investors more cautious. As a result, many preferred safer assets instead of stocks.

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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.