Monthly JSE Investment Insights: January 2026

The markets enter January in a state of cautious optimism, leaving behind holiday-thinned December trading. The January effect is a historical tendency for markets to rise at the start of the year, fuelled by growing conviction that global interest rates have peaked. However, this optimism is balanced by an awareness of domestic realities. As businesses fully reopen, the market’s focus will immediately snap back to critical local issues, the reliability of the electricity supply, the performance of South Africa’s ports and rail infrastructure, and the outlook for consumer spending in a high-cost environment. January is therefore a crucial month where investors will look past the seasonal cheer and scrutinise company updates for signs of resilience and real growth potential in the year ahead.

Boxer Retail (BOX)

Boxer has firmly established itself as a dominant force in the South African food retail market, capitalising on a consumer base that is intensely focused on value. Boxer reported a robust turnover increase of 13.9%, with like-for-like sales growing by a healthy 5.3%. Crucially, this growth was achieved while the company recorded internal food inflation of -0.7%, demonstrating its ability to offer lower prices to its customers and win market share. The investment case is built on Boxer’s proven ability to attract and retain customers through its hard-discounter model, its consistent double-digit sales growth, and its successful transition to a standalone listed entity. Based on this powerful performance and clear market leadership in its division, the share price has the potential to increase approximately 6.4% from current levels.

Santam (SNT)

Santam has firmly established itself as a top performer on the JSE, delivering strong and consistent returns to its shareholders. This market performance is fundamentally justified, as the company’s 18% compound annual growth in earnings per share (EPS) over the last three years closely mirrors its share price appreciation, indicating a rational valuation based on tangible results. Santam is not only excelling operationally, with its core underwriting margin expected to hit the upper end of its 5% to 10% target range, but is also executing a strategic expansion into the global market. In a transformational move, the company successfully launched a new, fully operational Lloyd’s policy administration system for its Santam Syndicate 1918. This advanced platform was delivered in a three-month timeframe by partnering with Alchemy Technology Services and Buckhill, showcasing a modern, data-first alternative to legacy systems. This rapid, successful deployment provides Santam with a scalable foundation to pursue its international diversification objectives. This combination of proven domestic profitability, strong shareholder returns, and a clear, technologically advanced global growth strategy highlights the consensus that the share has a potential upside of approximately 7.5% from its current share price.

Tiger Brands (TBS)

Tiger Brands is navigating one of the most challenging food markets in years. It is facing intense pressure from private labels, cheaper rivals, and aggressive pricing from big retailers. As detailed in its recent annual report, the maker of iconic brands like Jungle and All Gold is battling for market share as cash-strapped consumers increasingly switch to retailer-owned brands, which are now competing directly with premium products. However, the investment case for the month is built on the early but tangible success of the company’s turnaround strategy under CEO Tjaart Kruger. In response to these pressures, Tiger Brands has sharpened its execution by focusing on affordability, simplifying its operations, and cutting costs. This disciplined approach is already yielding results. In its last financial year, the company grew revenue, improved gross margins to 31.3%, and achieved a 35% jump in operating income. By actively managing its portfolio and adapting its product lines to consumer needs, the group is demonstrating a clear path to improved profitability. Based on the proven initial success of this turnaround, the share price has the potential to increase approximately 7.8% from current levels as the market continues to recognise the effectiveness of its leaner, more focused operating model.

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** This article was prepared by BROKSTOCK analyst Maboko Seabi