South African Stocks Record Best May Since 2013, Boosted by Tencent-Linked Rally
South Africa's equity market surged in May, driven by a tech-fueled rebound. Naspers Ltd., a top-weighted stock in the FTSE/JSE Africa All Share Index, led the charge.
The company’s gains followed a stronger-than-expected earnings report from Tencent Holdings, where Naspers holds a major indirect stake.
Tencent’s 13% sales growth exceeded analyst projections, lifting sentiment around Naspers and Prosus NV. Together, the two stocks accounted for a major portion of the index’s monthly gain. Bloomberg data shows Naspers alone delivered 20% of the total points added, almost triple the next biggest contributor.
Index Logs Best May Since 2013
The All Share Index climbed over 7% in dollar terms for the month. That marked its best May in 11 years and strongest month since June 2023. It also outpaced the S&P 500, the Stoxx Europe 600, and most emerging-market benchmarks.
Mining stocks joined the rally, with two platinum producers appearing among the top gainers. Investors shifted capital into resource-heavy markets, betting on a rebound in metals and a weaker U.S. equity outlook.
Outlook Hinges on Reforms and Global Flows
Peter Takaendesa of Mergence Investment Managers believes continued momentum depends on several key factors. He pointed to South Africa’s policy direction, global commodity trends, and capital movement into emerging markets.
Takaendesa said if South Africa advances structural reforms while global demand for metals climbs, the market could extend gains. Foreign investment shifts, especially the “sell America” narrative, may further support inflows into local equities.
South Africa now stands at a pivotal point. With reform, rising metal prices, and investor confidence, the rally has room to grow.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
