🇿🇦 Mzansi Market Memo — Wednesday, 6 August 2025

Sawubonani,

Markets might be climbing, but the world feels like it’s tilting sideways.

The All Share is edging closer to 100,000 again, up 0.36% on Monday, but geopolitical tremors are back with a vengeance. Trump’s new tariff regime has thrown a spanner into the global supply chain, and South Africa is caught in the crossfire with a fresh 30% hit on our exports - same same but different. Locally, we’re battling our own pricing demons as Eskom’s outdated tariff model gets called out from within cabinet.

Let’s get to the money.

⚡ Before the Bell

• 🌍 Global & Local Market Recap

  • JSE All Share Index: up 0.36% at 99,674

  • USD/ZAR Exchange Rate: R17.92

• Stats SA today: quiet

• Earnings today: 

  • AGMs: SEAM

📣 SENS Roundup

• Nedbank Group (NED):
  Nedbank reported interim results with headline earnings up 6% to R8.4bn and HEPS rising to 1,800 cents. A 1,028c interim dividend was declared. Despite a tough macro backdrop, the group improved ROE to 15.2%, restructured operations, and is actively divesting from ETI to refocus on SADC and East Africa.

• JSE Limited (JSE):
  The bourse itself delivered a 13.2% bump in net profit to R557.8m, boosted by strong equity market revenues. EPS grew to 687c, and CapEx remains disciplined. With solid margins and tech upgrades ahead of schedule, the JSE is well-positioned for H2.

• Telkom (TKG):
  In a Q1 FY26 update, Telkom reported 1.1% revenue growth and 6.5% EBITDA growth. Data remains the engine — mobile data users surged 27.5%. However, BCX lagged with an 8.3% revenue decline. Telkom's turnaround continues to hinge on fibre and mobile execution.

• Glencore (GLN):
  Shareholders approved a special resolution to enable off-market buybacks via UBS. These will commence 11 August under a $1bn programme, enhancing the capital return story.

• Pick n Pay (PIK):
  Issued a trading update and board changes. Group turnover grew 4.3% with strong Boxer growth (+12.1%) and online sales surging 33%. Clothing shined at +17.3% like-for-like. Grant Pattison joins as non-executive director designate, and Prof. Haroon Bhorat is appointed to a second board committee.

• Novus Holdings (NVS):
  Disclosed that it increased its stake in Mustek to over 39.95% following a purchase of ~22k shares. Together with concert parties, Novus now controls 60.24%, inching closer to full control outside the formal offer route.

🧠 Exec Picks

When we’re not talking about Trump’s tariffs, let’s talk about our tariffs… + Trump tariffs

Electricity Minister: Tariffs ‘Totally Unsustainable’ - the home tariffs
South Africa’s Electricity Minister, Kgosientsho Ramokgopa, has admitted that the current tariff structure — where heavy industrial users cross-subsidise residential demand — is “totally unsustainable.” This revelation came during a closed-door briefing with provincial premiers. With Eskom pushing for Nersa approval to overhaul tariffs, expect sharper increases for households and a major rethink of the municipal Eskom resell model.
Read more: IOL

The Full Trump 2.0 Tariff Tracker
Reed Smith’s legal team has compiled a comprehensive tracker of Trump’s 2025 reciprocal tariffs. South Africa joins a list of more than 60 countries now facing blanket duties, with certain AGOA and de minimis exemptions suspended. The tracker outlines tariff levels, scope, penalties for transshipments, and expected escalation.
Read more: Reed Smith

Lamola Hits Back at Opposition Over Tariff Diplomacy
Justice Minister Ronald Lamola came out swinging against opposition parties accusing government of diplomatic failure over the U.S. tariffs. He argued that trade and security issues are being conflated and defended the ANC’s non-alignment stance as principled. Behind the scenes, however, SA diplomats are scrambling to negotiate a carve-out or exemption via AGOA’s eligibility review.
Read more: IOL

🧾 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.

• ROE (Return on Equity)
  A profitability ratio measuring how efficiently a company generates profit from shareholders’ equity. Nedbank maintained an ROE of 15.2%, indicating solid capital efficiency.

• Interim Dividend
  A dividend paid before a company’s full-year earnings are finalised, usually at the halfway mark of the financial year.

• Tariff Structure (Eskom)
  In the energy context, this refers to how electricity prices are set across different user groups. South Africa’s current model sees industrial users subsidising residential ones — a structure deemed “unsustainable” by the Electricity Minister.

😂 Meme of the Day

🧾 Final Word

Trump’s tariff tantrum might dominate the headlines, but it’s the long game that matters. For South African companies, the key now is agility (in sourcing, pricing, and lobbying). Diplomatically, the AGOA clock is ticking, and economically, Eskom’s model can’t hold forever. Brace for price hikes and policy pivots.

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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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