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As we move into July 2025, investors should anticipate a historically subdued JSE, with the Top 40 index experiencing lower trading volumes and increased volatility, typical of global markets transitioning into the Northern Hemisphere summer. Despite the Top 40 climbing approximately 16.50% year-to-date, the rally has been driven by a narrow group of outperformers. Only 25% of listed shares have posted double-digit gains, while more than 128 shares remain in the red. This selective momentum creates both opportunities and challenges. Earnings releases may uncover potential gems, but the broader market’s caution, fuelled by low liquidity and political uncertainty, means investors should be especially cautious this month.
Here are the top 3 JSE shares to keep an eye out for:
The platinum play for July
The recent unbundling and rebranding from Anglo American has positioned Anglo American Platinum (AGL) as a more focused play within the platinum group metals (PGM) sector, offering clearer exposure for investors. Analysts have set a R570.92 price target, with a bullish case extending to R665.59, pointing to strong upside potential from current levels. Momentum across the sector remains firm, with peers like Northam Platinum (+98%) and Impala Platinum (+80%) delivering robust gains, driven by sustained global demand for platinum in both industrial and investment applications. AGL remains a standout in this space, with the share potentially climbing a further 7% to R589.81, making it one of the key platinum counters to watch this July.
A consumer-facing opportunity
Astral Foods (ARL) is gaining attention as investor sentiment gradually shifts from resource-heavy counters to undervalued shares. While many in the consumer discretionary space have come under pressure, ARL has shown relative resilience and stands to benefit from easing interest rates and rising consumer confidence. As a historically reliable dividend payer, it may regain favour in a lower-rate environment, particularly as optimism builds around South Africa’s economic outlook following the formation of the Government of National Unity (GNU). With improving macro conditions and its defensive food sector positioning, ARL has the potential to rebound toward R195.41, representing an 8% upside from current levels.
A Potential Rebound Opportunity in July
Bytes Technology Group (BYI) has declined over 30% since the start of July, presenting a potential opportunity for a technical retracement in the weeks ahead. Despite the pullback, the company remains fundamentally sound, continuing to benefit from strong corporate demand for digital transformation services. Its rand hedge profile, supported by offshore earnings, offers protection against local currency weakness, while the global tech sector continues to outperform traditional industries. Backed by healthy cash flows and consistent dividend growth, BYI retains long-term appeal. For investors monitoring short-term opportunities in quality counters, this correction may warrant closer attention as sentiment stabilises later in the month.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
