Lagos —

In South Africa, equity markets experienced a robust recovery as the JSE FTSE Top 40 surged past the crucial 82,000 mark. This upward trend was evident across most sectors, with 17 out of 20 finishing higher, notably within industrial services, energy minerals, and utilities.

High-value stocks had a strong performance, as Naspers climbed by 1.91%. The financial sector also demonstrated resilience, with FirstRand increasing by 2.28%, Standard Bank Group improving by 0.90%, and Capitec Bank Holdings progressing by 0.21%.

Nevertheless, worries about the possible 25% tariff imposed by the United States on imported automobiles have caused concern since South Africa’s car and component exports enjoy duty-free entry into the U.S. market thanks to the U.S. African Growth and Opportunity Act (AGOA).

The South African administration is aiming to convene talks with U.S. officials to discuss the matter at hand. If these duties come into effect, they might considerably affect the car industry, a significant contributor to South Africa’s export volumes.

A negative outcome could weigh on investor sentiment and affect South African stocks, with potential ripple effects for other African markets reliant on U.S. trade.

In the coming months, focus will turn to the global PMI figures for March, which follow a modest upturn in February. These indicators showed a less severe decline in the private sector activities.

Nevertheless, upward pressure on prices due to increased expenses for fuel and materials persists. Even though business sentiment stays optimistic, worries about U.S. trade policies might dampen this positivity, potentially restraining additional gains in local stock markets.

*Daniel Wesonga, the Senior Sales Manager at Pepperstone