JSE Top 40 Slips 0.15% on VAT Reversal—Key Levels in Focus

The Johannesburg Stock Exchange edged lower as the FTSE All Share Index declined 0.15% to 89,708.37, reflecting market unease following the government’s abrupt reversal of a planned VAT increase. The fiscal policy U-turn, which would have generated R75 billion in revenue, leaves South African equities searching for direction amid broader macroeconomic uncertainty.

Rand strength provided a counterbalance, appreciating 0.2% as inflation cooled to 2.7%. This dovish signal comes ahead of the South African Reserve Bank’s May rate decision, with traders pricing in potential monetary easing. The JSE Top 40 Index now faces a critical technical test at 83,421 resistance—a breakout level that could determine near-term momentum.

External headwinds persist. US trade policy volatility and slowing global growth continue to weigh on risk appetite, creating crosscurrents for emerging market assets. Market participants await clearer signals on both domestic fiscal stability and international risk trends before committing to directional bets.