The JSE All Share Index closed August 2026 at 116,257, compared with 114,632 at the end of May 2026, representing an increase of approximately 1.4% over the quarter.
The ongoing conflict involving the United States, Israel and Iran has led to substantial supply chain constraints in key commodities, including oil and fertilizer, resulting in heightened inflation worries due to increased input costs, particularly in oil. What was initially anticipated to be a swift military campaign, has now evolved into a six-month conflict, impacting consumers significantly, especially at the petrol pumps.
In South Africa, we have observed significant increases in fuel costs, leading to a ripple effect on the economy. The official government statement confirms that international product prices and supply shortages were significant factors. However, the South African Rand has shown resilience and, in some instances, even strengthened against major currencies.
The South African political landscape is witnessing the impact of the “March and March” campaign, which has prompted a notable number of foreign nationals to leave South Africa and return to their home countries to the north.
The Madlanga Commission has provided engaging follow-up, revealing staggering instances of corruption. Unlike the Zondo Commission, this commission has resulted in action by law enforcement agencies with SAPS making a significant number of arrests, which is both encouraging and necessary. It is refreshing to observe the enforcement of the law, signaling a potential for accountability going forward. South Africans are a resilient population, and despite ongoing issues, we have historically not only overcome challenges but thrived.
The war in Europe persists, marking a shift in battle tactics towards the use of drones and advanced technological operations, resulting in a rapidly developing industry.
Economic concerns linger around various markets, particularly in the AI and tech sectors, where caution should be exercised when investing. Globally, bond yields are near multi-decade highs as investors evaluate the possibility of interest rate increases to combat global inflation.
Against this backdrop, diversification, appropriate asset allocation and a long-term investment perspective remain important considerations when navigating periods of increased market uncertainty.
Below is an indication of how the Global Bourses have fared over the last few quarters:
The below graph tracks the performance of the Rand against the US Dollar over a seven-year period:
The below graph tracks the performance of the JSE All Share Index over a seven-year period:
On a compliance note, we would like to thank all our clients who have assisted us by keeping their information and documentation up to date.
The Conduct of Financial Institutions (COFI) Bill remains part of the ongoing development of South Africa’s financial-sector regulatory framework. The legislative process is continuing, and we will monitor developments and communicate any relevant implications for our clients as further information becomes available.
In terms of company news, we would like to congratulate Kerusha Govender on her promotion to Investment Officer. Kerusha has risen through the ranks within the company and is regarded as a valuable asset to our organization, and we are confident she will contribute significantly.