South African Banks Rally as JPMorgan Upgrades on Macro Outlook

An index of South African banking stocks climbed to a record high on Thursday after JPMorgan Chase & Co upgraded the country’s financial sector to overweight, citing an improving macro backdrop, attractive valuations and a positive earnings outlook.

“While gross domestic product growth is unexciting, momentum in structural reforms and recent sovereign rating upgrades are positive developments reinforcing a higher-quality growth in 2026,” JPMorgan analysts including Baron Nkomo wrote in a report.