SA’s Stock Market Outperforms Peers in Emerging Economies

May 31, 2025

(3 Minutes Read)

The FTSE/JSE Africa All Share Index is up more than 7% in dollar terms in May, on track for its biggest monthly gain since June last year and its best May performance since 2013. It has outperformed emerging-market peers as well as the S&P 500 and the Stoxx Europe 600.

South Africa’s benchmark stock index is heading for its best month in almost a year, with a helping hand from China’s most valuable company.

The largest contributor to the rally has been tech investor Naspers, which soared after China’s Tencent Holdings, in which it owns a stake, reported a faster-than-anticipated 13% rise in sales.

Naspers, which accounts for more than 12% of the index, contributed one-fifth of the monthly gain in index points, according to data compiled by Bloomberg. That’s almost three times as much as any of the next three stocks, which include two platinum miners and Prosus NV – which holds Naspers’ stake in Tencent.

Whether the rally continues will depend on the South African coalition government’s commitment to push through economic reforms, metal prices and the “sell America” trade that is driving investment to developing nations, said Peter Takaendesa, head of equities at Mergence Investment Managers.

Naspers has climbed more than 5% this month on investor optimism that Tencent will weather the challenging economic outlook in the coming months. The WeChat operator’s sales rose to 180.02 billion yuan (USD 25 billion) in the March quarter, as it benefited from the Chinese tech comeback triggered by DeepSeek.

South Africa’s central bank resumed its easing cycle on Thursday to offer support to the stuttering economy as inflation remains benign. The monetary policy committee has cut the benchmark interest rate by 25 basis points to 7.25%, the lowest in more than two years, while downgrading its forecasts for economic growth.

The cut will provide support for some sectors, such as retailers, Unum Capital analyst Lester Davids stated. The All Share Index declined by 0.2% in Johannesburg as of 12:12 p.m. local time.