Soaring precious metal prices provided a fillip to the JSE this year, with the local bourse gaining about 38%, its best performance since 2005.
A surge in gold and platinum prices provided the biggest boost, as lower interest rates and perceived political risk have seen money flowing away from the dollar amid the Donald Trump presidency, which has rattled markets.
According to JSE data to December 19, foreigners were net buyers of R117bn in local bonds in 2025.
It is worth noting that geopolitical tension and risk aversion, a sluggish South African economy and political concern have seen an exit by foreigners from local stocks, with the JSE recording net equity sales of R218bn this year, following sales of R141bn at the same point in 2024.
Independent Securities portfolio manager Harold de Kock, however, is positive on the JSE outlook for 2026. “With net foreign sales of this amount, the JSE still managed to reach a record high over the past few days. Imagine what will happen when the foreigners return?
“If we can get our GDP growth up to 2% in 2026, they will definitely be back,” he said.
The best-performing JSE index for the year was precious metals and miners, up more than 200%. Outstanding in this sector was Sibanye-Stillwater, whose share price gained more than 300%.
Gold recorded its biggest rise since 1979, reaching a record high last week of $4,550/oz. At 1pm on Wednesday it was trading at about $4,311/oz for a gain of 64% over the year.
According to Reuters, platinum had its best year on record, with a rally of more than 126%.
On the outlook for the new year, North-West University professor Raymond Parsons believes that after ending 2025 in a “stronger and better position” than it did 2024, “the economy enters 2026 on a note of cautious optimism”.
“In the past few months, a number of positive developments have created what could be a turning point in the business cycle. SA has been in an economic recovery phase this year, and a cumulative set of favourable factors promises better economic traction in 2026,” he said.
Companies outside of precious metals that stood out included Magda Wierzycka‘s boutique financial services group, Sygnia, whose share price added 60%.
In telecoms, MTN and Blu Label Unlimited also did well, with the latter having recently listed Cell C as a separate entity. MTN’s gain for the year was 84% and that of Blu Label 80%. The MTN rally followed three straight years of losses, while this was Blu Label’s best year since listing.
Among the big guns, Naspers added 32%, Prosus 36% and British American Tobacco 39%. Capitec was the best performer in the banking sector, up 32%.
The rand firmed 12% in 2025 and was trading at R16.57/$ soon after midday on Wednesday — a level last seen in 2022. The gain for the year was the biggest since 2009.
South Africa’s blended 10-year bond now yields 8.3%, after peaking at 11.3% in May 2023. Lower bond yields allow the government to spend less on repaying debt and more on infrastructure and providing services to the population.
“In the coming year, a sufficient number of firms must feel that the policy environment and growth prospects justify them making fresh plans for expansion. A litmus test of rising investor confidence in 2026 would be the extent to which companies can access any new investment opportunities and draw down on the over R1.8-trillion in cash deposits currently at their disposal. Companies are not yet mobilising that cash in any significant way,” Parsons said.
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