Monthly JSE Investment Insights: August 2025

August has historically been a period of mixed performances, often influenced by a combination of local and international factors. While some years have seen August bring a recovery and rallies, others have been marked by downturns and investor hesitancy. Recently, the JSE Top 40 index has seen significant movement, even hitting a record high, driven by expected interest rate cuts in the US and a weaker dollar, which tends to benefit emerging markets. However, this optimism is hindered by local challenges, including sector-specific risks that can lead to investor caution. The market has also been experiencing a delisting trend, which presents both challenges and unique opportunities for investors.

As we delve into the monthly analysis of the top three JSE companies, it's important to consider this broader market context.

A banking opportunity in August

Absa Group (ABG) has shown steady momentum through a combination of strategic partnerships, financial innovation, and community-focused initiatives. Among its recent developments is a joint venture with Foton, aimed at expanding financing access in the minibus taxi industry, a critical part of South Africa’s informal economy. In line with sustainability trends, Absa is also working with BYD to create a green vehicle finance ecosystem, tapping into the growing demand for environmentally conscious mobility. Positive sentiment in the residential property market may support further growth in Absa’s mortgage division, while the bank’s recently launched Credit Coach app feature aims to improve customer financial health. With first-half results due on August 18th, investors across the board will be watching closely for performance indicators. The share could potentially move 6.75% higher from current levels to R191, as Absa continues to align its strategy with key economic and consumer trends.

A real estate opportunity this August

MAS PLC (MSP), a real estate investment company with a growing footprint in Central and Eastern Europe, has recently drawn attention due to notable corporate activity. Major shareholder Prime Kapital has made an offer to increase its stake in the company, reflecting a strong vote of confidence in MAS’ long-term strategy and value. This offer gives existing shareholders flexibility, offering both cash consideration and preference shares, with no intention to delist, a sign of continued market engagement. MAS has been steadily reinvesting capital from Western Europe into higher-yielding assets and developments in regions like Romania and Poland, where real estate fundamentals remain attractive. With shareholder backing and a clear regional focus, MAS could potentially rise by 10% to R25.90, aligning with renewed interest in diversified and high-growth property markets.

A leading consumer brand play in August

Anheuser-Busch InBev (ANH), one of the world’s largest brewers, has reported a positive Q2 2025 performance, with revenue up 3%, supported by strong demand across its global megabrands. Notably, Corona grew 7.7% outside its home market, while the company’s no-alcohol beer segment increased 33%, highlighting its ability to adapt to changing consumer trends and diversify its product offering. On the digital front, AB InBev’s BEES Marketplace (B2B digital platform) continued to gain traction, with Gross Merchandise Value (GMV) from third-party products up 63%, contributing to operational efficiency and customer reach. While total volumes saw a slight dip, the company’s profitability, innovation focus and ongoing share buy-back program reflect strategic confidence. Based on recent momentum, the share has the potential to rise 8.87% from current levels, targeting a move to R1148, as it continues to develop alongside global consumption patterns.

Disclaimer: 

*Any opinions, views, analysis, or other information provided in this article is provided by BROKSTOCK SA trading as BROKSTOCK as general market commentary and should not be viewed as advice according to the FAIS Act of 2002. BROKSTOCK SA does not warrant the correctness, accuracy, timeliness, reliability, or completeness of any information provided by third parties. You must rely upon your judgement in all aspects of your investment decisions, and all decisions are made at your own risk. BROKSTOCK SA and any of its employees shall not be responsible for and will not accept any liability for any direct or indirect loss, including, without limitation, any loss of profit which may arise directly or indirectly from the use of the market commentary. The content contained within the article is subject to change at any time without notice. BROKSTOCK SA is an authorised financial services provider - FSP No. 51404. T&Cs and Disclaimers are applicable: https://brokstock.co.za/

 ** This article was prepared by BROKSTOCK analyst Maboko Seabi