South Africa’s benchmark stock index surged to a record high on Monday, driven by a rally in gold stocks as investors shrugged off a U.S. aid freeze and focused on rising gold prices fueled by President Donald Trump’s latest tariff pledge, Bloomberg reported. The FTSE/JSE Africa All Share Index climbed as much as 0.5%, extending its gains for a fifth consecutive day, with gold miners leading the charge as a subindex of nine producers jumped 2.3%.
Trump’s decision to halt U.S. aid to South Africa over the weekend escalated tensions between the two nations, but the annual aid of around $400 million—primarily for healthcare programs—was seen as having limited economic impact. Investors instead focused on South Africa’s domestic economic prospects, including plans to stabilize state-owned electricity and transport companies. In his state-of-the-nation address last week, President Cyril Ramaphosa outlined a target to achieve growth of more than 3% to tackle the country’s 32% unemployment rate.
The FTSE/JSE Africa All Share Index has gained about 7% in dollar terms this year, outpacing the 3% rise in the MSCI Emerging Markets Index. The rally highlights investor confidence in South Africa’s economic reforms and the resilience of its commodity-driven market, even as geopolitical tensions with the U.S. persist.
