The South African stock market edged slightly higher on Wednesday following the release of a purchasing managers’ index (PMI) survey that remained in the expansion territory, although it was slightly below its previous reading.
The index showed a modest improvement in operating conditions for August as cost pressures eased.
Despite the market’s overall gain, sector performance was mixed. Ten sectors were under pressure while ten advanced, led by the health technology and process industries sectors.
The headline PMI stood at 50.1 for the month, down slightly from 50.3 in July. This marks the fourth consecutive month the index has remained marginally above the 50.0 threshold that separates growth from contraction. The reading suggested a slight improvement in business conditions, driven by the first rise in output since May. Notably, input prices rose at their slowest pace in 10 months, with the rand’s appreciation against the US dollar cited as a key factor.
Looking ahead, the market is awaiting Thursday’s release of business confidence data for the third quarter, where an improvement can support the market. Sentiment had weakened in Q2 amid global trade uncertainties and domestic logistical hurdles, particularly after the US administration under President Donald Trump imposed a 30% tariff on imported goods from South Africa.
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