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South Africa matches India’s wealth creation as metals rally roarsThe sharp upswing in South African equities—led largely by precious-metal and mining stocks—has propelled the FTSE/JSE Africa All Share Index to a gain of nearly 60% in dollar terms over the past year. By comparison, India’s benchmark Nifty 50 returned a modest 5.2% in dollar terms during the same period.By Yoosef K  January 7, 2026, 6:45:14 PM IST (Updated)South Africa’s equity market— barely a tenth the size of India’s—has added more than $160 billion to investor wealth over the past year, nearly matching the absolute gains delivered by Indian equities over the same period.The surge has been driven by a sustained rally in precious metals such as gold and silver, alongside a strengthening rand, which lifted the total market capitalisation of shares listed on the Johannesburg Stock Exchange to about $505 billion, the highest level since 2019.Indian stocks—the world’s fifth-largest market with a combined valuation of $5.3 trillion—added about $200 billion in value over the past year. Returns were constrained by muted equity performance and a weakening currency, with the rupee sliding to a record low of 91.08 per dollar in mid-December. The rise in overall market capitalisation was also supported by record primary issuances of about $22 billion in 2025.The sharp upswing in South African equities—led largely by precious-metal and mining stocks—has propelled the FTSE/JSE Africa All Share Index to a gain of nearly 60% in dollar terms over the past year. By comparison, India’s benchmark Nifty 50 returned a modest 5.2% in dollar terms during the same period.Rising metal prices sharply boosted investor appetite for producers, with shares of Sibanye Stillwater, Northam Platinum Holdings, Pan African Resources, AngloGold Ashanti, and Drdgold surging between 250% and 350% over the past year.Currency moves further widened the performance gap. The rand strengthened about 14% against the US dollar, amplifying returns for offshore investors. In contrast, the Indian rupee—Asia’s worst-performing major currency—declined around 5% over the same period.Also Read: Experts suggest short-term trades in Divi’s, Fortis Healthcare, NMDC, Lupin and more The rally in South African stocks shows few signs of cooling. The JSE All Share Index, which represents nearly 99% of the exchange’s total market capitalisation, has gained 3% so far this year, supported by continued strength in the rand and gold prices. The currency is currently trading near 16.4 per dollar, its strongest level in more than three years.Meanwhile, Bernstein has downgraded Indian equities to neutral, citing a lack of fresh catalysts for a meaningful re-rating in 2026. “It’s a year that promises many things—few rate cuts, a slight return of private capex, and a tentative trade deal—but these ‘little bits of everything’ lack the momentum to sustain the India story at the heights we’ve grown accustomed to,” analysts Venugopal Garre and Nikhil Arela wrote in a Jan. 2 note.The rally has also reshaped emerging-market benchmarks, with South Africa’s weighting in the MSCI Emerging Markets Index overtaking Saudi Arabia’s in November. Saudi Arabia ranks 13th globally by market capitalisation at $2.3 trillion, while South Africa stands 27th, ahead of markets such as Norway, Malaysia, Mexico, and Turkey, according to Bloomberg data.Continue Reading with CNBC-TV18 Access MembershipPriority Access and Networking: CNBC-TV18's flagship events Interaction with CNBC-TV18's journalists Webinars & LIVE Q&As with India Inc. Leaders Exclusive CNBC-TV18 studio & newsroom tours Premium business insights, expert opinions & analysis Curated lifestyle privileges & offers