🇿🇦 Mzansi Market Memo — Wednesday, 16 July 2025

Moloweni gents and gentleladies.

Is South Africa always this newsworthy or did Mzansi Market Memo start at just the right time? Because eish, the President and markets are keeping me busy!

Back to it —> South African markets ride a seesaw of optimism and caution as political headlines and capital market moves set the tone midweek. Major SENS announcements are signaling confidence through corporate buybacks, while developments on the political and macro fronts keep investors alert. With the rand steadying on improved mining output and new fiscal narratives emerging from Parliament, participants are bracing for action—whether they're buying the buybacks or tracking leadership changes.

Let’s get to the money.

⚡ Before the Bell

• 🌍 Global & Local Market Recap

  • JSE All Share Index: Recovered slightly up 0.23%

  • USD/ZAR Exchange Rate: ZAR holding at R17.91

  • Market sentiment: South African equity fund managers are overwhelmingly bullish, with 67% expecting a rate cut this month and equities outpacing bonds and cash on return expectations. Rand strength follows positive mining data and anticipation of US inflation signals.

• Watchlist: President Ramaphosa’s budget address at 14:00 and the StatsSA upcoming release of retail sales data could steer sentiment and add volatility.

• Big Trends: International shakeups are in the air—from global CEO appointments to US tariffs impacting local exporters. Meanwhile, a notable plunge in vehicle exports reminds us of shifting global trade winds.

• Upcoming earnings: NEWPARK and EXEMPLAR AGM today

📣 SENS Roundup

1. PROSUS N.V & NASPERS LIMITED
   Announcement: Update on Repurchase Programme
   Summary: Both provided an update on their share repurchase programme.
   TLDR: Both continue to return capital to shareholders with ongoing share buybacks—potentially supportive for sentiment and the share price.

2. LABAT AFRICA LIMITED
   Announcement: Cautionary Announcement
   Summary: A cautionary was issued advising shareholders to remain alert as price jumped 20%.
   TLDR: Significant price movement and cautionary flag—traders take note for likely future developments.

3. ASSURA PLC
   Announcement: Publication of Response Document
   Summary: Released key information possibly related to M&A or substantial transactions.
   TLDR: Material disclosure—watch for market reactions if transaction-related.

Routine Updates:

• Various interest or capital payment notifications and redemption or listing of financial instruments by banks and investment companies (FIRSTRAND, STANDARD BANK, Prescient, Arysteq, Goldman Sachs, etc.)

• Several companies, including ABSA, enX Group, AVI, REMGRO, and Glencore, made announcements about director dealings, share purchases, board changes, and upcoming results, all part of regular governance and disclosure cycles.

• VUKILE, NOVUS HOLDINGS, QUILTER, and others reported fulfilled regulatory requirements or standard market transactions.

🧠 Exec Picks - tariffs and tariffs

1. What’s the difference? Naspers vs Prosus: A tale of two listings
   On Sunday, we’ll be doing a special edition of Mzansi Market Memo focused on these two behemoths and what it actually means for someone evaluating the two. For now, here’s a…

   …TLDR: Naspers owns Prosus. Prosus owns Tencent. And the entire setup is a gymnastics routine to fix a JSE valuation headache.

2. SA Police Scandal Deepens and new appointment: South Africa’s war on crime faces fresh scrutiny and political fallout as President Ramaphosa places the Police Minister on leave amid explosive criminal allegations. For now, the President has appointed Gwede Mantashe as acting Police Minister
   TLDR: Police Minister suspended amid corruption allegations, sparking a judicial inquiry and political uncertainty.

   Read more: IOL

3. Vehicle Exports Plunge: Tariffs from the US have sharply reduced vehicle exports from SA, raising concerns for the local automotive sector.
   TLDR: US tariffs cause an 80%+ drop in SA vehicle exports, threatening jobs.
   Read more: Business Insider

🧾 Glossary: Market Moves Explained

When the jargon hits harder than a load shedding schedule, we’ve got you. Here’s your quick decode of today’s financial buzzwords.

• Repo Rate - The interest rate at which the SA Reserve Bank lends to commercial banks—an anchor for local rates.

• Retail Trade Sales - Stats SA’s measure of consumer spending trends in the South African economy.

• Cautionary Announcement - A regulatory alert advising shareholders of significant developments that might impact price. In the the case of LABAT, they’ve experienced a huge jump in share price. High volatility in a share price is not usually considered a good thing. This either indicates a market surprise, or the effect of ‘meme’ trading. Given that the stock trades at less than 10c it is susceptible to movements of this magnitude that make headlines.

😂 Meme of the Day

🧾 Final Word

Share buybacks are a strong indicator in the current market that there’s more to come. Stay tuned to further announcements but be cautious of the JSE at all time highs. Who is going to give first? if ever..

Stay nimble, stay focused—the next bell is just the start.

Mzansi Market Memo is compiled daily by Rayhaan @ the Memo for investors and operators who trade before the sun rises. *This memo is for informational purposes only. Not financial advice. Still, we’d buy low and read high.

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