Monthly JSE Investment Insights: May 2026

There is an old saying in the stock market: "Sell in May and go away." The idea is that the market often slows down in the middle of the year, so investors should cash out and take a break until things pick up again later. But in today's fast-moving market, blindly following this old rule could mean missing out on potential opportunities. Instead of running away, smart investors use this time to look for companies that are making big moves, restructuring for growth, or rewarding their shareholders. On the JSE this May, several companies are doing exactly that. Here are three shares that show why staying invested could potentially be the better strategy.

Gold Fields Limited (GFI)

Gold Fields is one of the world's largest gold mining companies, and its 2025 financial results reflect a strong year, highlighted by higher gold prices and increased volumes sold. Profit jumped 187%, while the cash generated after expenses increased by an impressive 391%. The company has chosen to pass a portion of this success directly to shareholders, declaring a final dividend of R18.50 per share, a 164% increase from the prior year. Based on current fundamentals and the broader gold market environment, the share has approximately 8.9% potential upside from current levels. It is worth noting, however, that Gold Fields' performance is closely tied to the price of gold, which is widely regarded as a safe-haven asset during times of global uncertainty.

Dis-Chem Pharmacies (DCP)

Dis-Chem is a brand most South Africans know well, famous for its large pharmacies and wellness stores, and the company is currently navigating two very different storylines at the same time. On the challenging side, Dis-Chem has initiated a restructuring process that will affect over 500 head office employees. New CEO Rui Morais has been clear that this is not a sign of distress, but rather a deliberate effort to reorganise the business for future growth, cutting certain roles while simultaneously creating 200 new positions in areas like its innovation unit. Retail store staff and distribution centre employees are not affected. On the positive side, the company's newly launched loyalty programme, "Better Rewards," is delivering tangible results. In just 17 weeks since its launch, the programme attracted 550 000 new shoppers who had not engaged with the brand in the prior year, driving a 10.4% increase in retail revenue and a 13.7% jump in pharmacy sales. The core business is clearly gaining momentum, even as the organisation restructures around it. Based on this combination of operational strength and strategic repositioning, the share has the potential to move towards R39 per share, representing approximately 7% from current levels. That said, large restructurings carry execution risk, and investors will be watching closely to see whether the cost savings and new structure deliver the intended results.

Growthpoint Properties (GRT) 

Growthpoint is one of the largest property companies on the JSE, with a portfolio that spans shopping malls, office buildings, and industrial warehouses across South Africa and beyond. The company is currently advancing two notable development projects that reflect its long-term growth strategy. The headline project is the planned R24 billion expansion of the Granger Bay precinct at the V&A Waterfront in Cape Town, which Growthpoint co-owns. The ambitious development involves reclaiming land from the sea to create a protected bay, with mixed-use buildings including apartments, retail, and leisure spaces planned around it. The company expects to receive the necessary environmental approvals by next year, with the project to be rolled out in phases over 10 to 15 years, funded through the Waterfront's balance sheet and residential sales. On the industrial side, Growthpoint has launched a R135 million Phase 2 redevelopment of a logistics site in Montague Gardens, Cape Town, replacing outdated warehousing with modern facilities. The demand for this type of space is clearly strong, the first phase was fully let before construction was even complete. While these projects paint an encouraging picture of a company actively investing in quality assets, it is worth noting that large-scale property developments carry inherent risks, including regulatory delays, rising construction costs, and shifts in the interest rate environment, all of which could affect the timelines and returns of these projects. The share has a potential upside of approximately 5% from current levels, reflecting the steady, long-term nature of property investment rather than a short-term catalyst.

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** This article was prepared by BROKSTOCK analyst Maboko Seabi