Monthly JSE Investment Insights: September 2025

JSE Navigates September with a Cautious Outlook

September on the markets often presents a period of transition for investors, as the market digests half-year corporate earnings and recalibrates for the final quarter. Historically, the month can be volatile, influenced by both local economic data and shifting global sentiment. This year, the market continues to watch for clues from international central banks regarding interest rate trajectories, while domestically, factors like consumer spending power and industrial output remain key areas of focus. The resilience shown in previous months is being tested as investors weigh strong corporate performances against persistent economic challenges, leading to a more cautious and selective investment environment.

Altron (AEL)

The technology group has taken forward steps in its strategic development, which is reflected in its recent positive announcements. The company has been actively refining its structure, including a management buyout agreement for Altron Nexus, allowing the group to focus on its core IT services and platform businesses. In May, Altron celebrated its 60th anniversary with a good financial performance, reporting a 50% surge in profit to R972 million.

Altron has strengthened its governance and strategic oversight with the appointment of a new independent non-executive director, effective 1 August. The company also issued a voluntary operational update in late August, providing transparency on its progress and reinforcing confidence in its trajectory. Together with its recent financial uplift, these developments highlight a business that is effectively executing its growth strategy while building a stronger foundation for the future. Based on this momentum, the share shows potential for a 9.5% move higher to R20.90.

Italtile (ITE)

Italtile, a leading retailer and manufacturer in the tile and sanitaryware sector, released its full-year results for the period ending June 2025, in late August, setting the tone for September. The results confirmed the challenging retail environment, with the company reporting 1.1% growth in headline earnings per share. This performance highlights the pressure on consumer discretionary spending, not forgetting the high living costs and interest rates.

Despite challenging conditions, Italtile has benefited from its vertically integrated model and strong brand presence across CTM, Italtile Retail and TopT, which have provided a defensive edge. The company has successfully protected margins and sustained profitability through a focus on operational efficiencies and market share gains, even in a subdued consumer environment. While the outlook remains cautious and closely tied to a recovery in consumer confidence, Italtile’s ability to deliver growth in such a difficult climate highlights its resilience and market leadership. With this foundation, the share has the potential for a 10% jump to R12.10.

Sirius Real Estate (SRE)

The share price has surged over 25% year-to-date, and the recent pullback has created the potential for a further 8% upward move to R25. The real estate company, which owns and operates branded business and industrial parks in Germany and the UK, has had an active start to September, announcing the successful completion of acquisitions in Dresden and Southampton for a combined total of more than €60 million. These additions significantly strengthen its asset base and boost rental income potential in key industrial hubs.

This followed a busy August where the company acquired a major UK trading estate and, crucially, secured a new €150 million unsecured revolving credit facility. This facility provides Sirius with substantial financial firepower and flexibility to pursue further value-accretive acquisition opportunities. The consistent and aggressive expansion, backed by a solid financing strategy, demonstrates management's confidence in its business model and its ability to generate value for shareholders through strategic asset acquisition and management in Europe's robust industrial property sector.

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 ** This article was prepared by BROKSTOCK analyst Maboko Seabi