May commentary: The JSE follows global equity markets higher

SOUTH African (SA) equity markets followed global equity markets higher in May with the FTSE/JSE Capped SWIX Index up 3% month on month (m/m).

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Gold stocks have buoyed the performance of the local bourse in the year to date through April, but they were a minor detractor from May’s performance as the yellow metal price paused after a two-year, 70% rally. Chinese tech conglomerate Tencent (+5% m/m) boosted the return of domestic investment holding companies Naspers and Prosus (+6% m/m) as a de-escalation in China/US trade policy combined with a solid earnings announcement from Tencent during the month.

Food producer, Tiger Brands, up 20% m/m, was one of May’s standout performers as management continues to execute well on its turnaround plan. The maker of Albany bread’s first half 2025 strong earnings announcement was accompanied by news of a special dividend from the results of management’s streamlining efforts. Investec, up 10% m/m delivered 20225 results with revenue ahead of expectations and above the top of its guided range. Pepkor (+9% m/m) was another JSE-listed company to report better-than-anticipated earnings in May. Results showed the company increased its lead as SA's biggest seller of cellphones on a pay-as-you-go basis. Management suggested that the strong retail revenue growth momentum had extended into the second half of 2025.