{"id":6563,"date":"2026-06-30T09:31:54","date_gmt":"2026-06-30T07:31:54","guid":{"rendered":"https:\/\/dotnewsconnect.co.za\/fin\/?p=6563"},"modified":"2026-06-30T09:31:58","modified_gmt":"2026-06-30T07:31:58","slug":"market-update-while-wall-street-wobbles-south-africa-gains-momentum","status":"publish","type":"post","link":"https:\/\/dotnewsconnect.co.za\/fin\/2026\/market-update-while-wall-street-wobbles-south-africa-gains-momentum\/","title":{"rendered":"Market Update: While Wall Street Wobbles, South Africa Gains Momentum"},"content":{"rendered":"\n
\n

\u201cIn the short run, the market is a voting machine. In the long run, it is a weighing machine.\u201d (Benjamin Graham)<\/p>\n<\/blockquote>\n\n\n\n

In June, the performance gap between the JSE and developed markets narrowed amid positive sentiment, and, for the first time in years, the investment case for South Africa was being made not by local optimists but by global institutional investors.<\/p>\n\n\n\n

While global markets had to contend with a sharp technology sell-off, lingering geopolitical uncertainty, and a more hawkish Federal Reserve, South African assets narrowed their relative performance gap on the back of a retreat in stagflation fears and a positive showing in a key institutional investment survey.<\/p>\n\n\n\n

Late-month \u201cchipwreck\u201d rattles investor confidence<\/h6>\n\n\n\n

For much of June, US equities appeared to be having a good month, hitting a new high before a sharp correction in technology shares in the final weeks. The S&P 500 ended the month in the red, thanks largely to a late correction concentrated in semiconductor and AI-adjacent stocks triggered by investor concerns about the scale and sustainability of AI capital expenditure. South Korea\u2019s KOSPI, a strong beneficiary of the AI growth story, fell more than 10% in a single session. The tech sell-off, though potentially short-lived, is a keen reminder of how dependent the US stock market\u2019s performance is on this single narrative.<\/p>\n\n\n\n

South Africa: a valuation and sentiment-recovery story<\/h6>\n\n\n\n

In South Africa, fears of stagflation began to dissipate, and foreign investor sentiment improved. These positive developments haven\u2019t yet been reflected in the JSE All Share Index\u2019s performance, which was negative in June.<\/p>\n\n\n\n

However, a Bank of America survey of 14 institutional fund managers found a notable increase in foreign investors\u2019 perceptions of South African assets, with respondents showing the highest level of optimism since 2009. More than 90% of respondents said they were seeing more buying opportunities than selling opportunities in South African equities, and a net 57% of managers were overweight on South African equities.<\/p>\n\n\n\n

The positive drivers reflected in the survey are broad-based.<\/p>\n\n\n\n