Foreign investors have cashed in on a record-breaking rally of SA stocks this year, selling R165bn worth of shares in the first eight months of this year, according to the SA Reserve Bank Quarterly Bulletin.
The net sales of JSE-listed shares by foreign investors in the period represent an acceleration from the net sales of R93bn reported in the same period last year.
“The persistent sell-off by non-residents in the domestic secondary share market reflected weak domestic economic growth and recurring disputes within the GNU, alongside continued geopolitical risks and investor concerns over the 30% tariff imposed on SA exports to the US,” the bulletin, released on Tuesday, said.
The all share index (Alsi), the broadest measure of SA’s stock market performance, has rallied to record highs this year, breaching the 100,000-point mark in July — the first time it has done so in the JSE’s 137-year history.
The Alsi closed Tuesday’s trading session at just under 108,000 points, nearly 50,000 up from the 60,000 mark the bourse reached in November 2017.
“The domestic share market outperformed its global counterparts in the first half of 2025, as the Alsi, on balance, increased by 20.7% in US dollar terms,” said the bulletin.
“This occurred as emerging market shares outperformed the developed markets, with the MSCI Emerging Markets Index posting a 13.7% increase compared with the 8.6% gain in the MSCI World Index over this period.”
The increase in the Alsi was buoyed by, among other factors, higher international share prices and positive sentiment after the passing of the revised 2025 national budget.
Domestic share prices continued their strong momentum in the ensuing months, despite the 30% tariff. The SA equity market has experienced one of the broadest recoveries in global equity markets since President Donald Trump’s “Liberation Day” tariff scare in early April, according to research by Deutsche Bank.
The Reserve Bank’s bulletin shows that the rally in SA equities this year has translated into an increase in household wealth, with many working and business people’s pensions and investments exposed to the stock market.
“Households’ net wealth increased further in the second quarter of 2025 as the market value of total assets increased more than that of total liabilities,” the Bank said.
“The increase in the value of assets resulted primarily from higher share prices as the FTSE/JSE all share index increased notably in tandem with international share price indices, while the increase in the value of housing stock was supported by the continued acceleration in domestic property price growth.”
The Anglo American asset simplification programme, which saw it demerge its stake in Valterra Platinum, formerly Anglo American Platinum, weighed on foreign-owned assets in SA.
The bulletin showed that SA’s direct investment liabilities reverted from an inflow of R11.7bn in the first quarter of this year to a significant outflow of R73.5bn in the second quarter.
“The switch could primarily be attributed to [the] Anglo American disposal of equity in Valterra Platinum,” the Bank said. “Portfolio investment liabilities switched from an outflow of R53.7bn in the first quarter of 2025 to a substantial inflow of R69.4bn in the second quarter, mainly due to the distribution of shares in Valterra Platinum to non-resident shareholders of Anglo American Plc.”
Standard Bank, which acted as a joint global co-ordinator on the deal that accelerated the sale of Anglo’s residual stake in Valterra in a R44.1bn transaction, described the transaction as the largest ever equity capital markets transaction on the JSE. Standard Bank, Africa’s largest bank by assets, was the only SA bank within the syndicate of global investment banking majors.
The Bank’s bulletin showed credit by banks to companies was picking up. By contrast, growth in loans and advances extended to households has remained subdued so far this year, “indicative of continued caution among both banks and consumers”.
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