Medical aid for R1.60 a month, and crypto crackdown in South Africa

South Africa’s rand remained resilient on Monday, 3 August, following the release of Absa’s Purchasing Managers’ Index.

The index showed that sentiment among South African manufacturers deteriorated in July, slipping to its lowest level in seven months.

Sentiment was weighed down by weak export demand and concerns that escalating hostilities in the Middle East could further weigh on demand.

Despite this, the rand traded at R16.52 against the United States dollar, a 0.3% improvement from its previous close.

The Johannesburg Stock Exchange also had a decent start to the week, with the All Share Index up 1.06%.

The biggest movers on the exchange were gold miners, with AngloGold Ashanti, Gold Fields, Harmony Gold, and Pan African surging 8.6%, 3.7%, 3.6%, and 3.0%, respectively. 

Telecoms also had a good day, with Telkom, MTN, Blu Label, and Vodacom up 2.9%, 1.8%, 1.0%, and 0.6%, respectively. 

Retailers struggled on Monday, with SPAR, Woolworths, Pick n Pay, and Truworths down 6.4%, 1.8%, 1.6%, and 0.8% respectively.

In the commodities market, Brent crude oil fell sharply on Monday, dropping to a three-week low of $83 a barrel, down 5%. On Tuesday morning, oil prices ticked up 1.3% again to $85/barrel.

This came after US President Donald Trump called off planned military strikes on Iran, signalling fresh diplomatic negotiations, which could see the Strait of Hormuz reopened.

On the morning of Tuesday, 4 August, the rand was trading at R16.51 against the United States dollar, R19 against the euro, and R22.17 against the British pound.

5 important things

Petrol price surprise for South Africa: Petrol prices are set to come down by 52 cents per litre in August, while diesel prices are rising by more than R1 per litre. [Daily Investor]

Medical aid used to cost R1.60 per month in South Africa: Medical aid prices have risen sharply over the past few decades. In 1982, Bonitas offered private healthcare coverage for premiums ranging from R1.60 to R9.60. [Daily Investor]

Telkom is taking on MTN and Vodacom on their turf: Telkom reported that it is gaining market share in non-metro regions of South Africa in the first quarter of its 2027 financial year. [Daily Investor]

National Treasury and the Reserve Bank crack down on crypto: The Treasury and Reserve Bank introduced proposals to direct cross-border transactions to curb illicit flows. [BusinessDay]

Amazon reaches $3 trillion market value: Amazon’s market cap rose to $3 trillion on Monday following a 15% jump on Friday, marking the e-commerce giant’s stocks’ best day in years. [Wall Street Journal]