JSE Relative Sector Analysis

Research Notes May 2026 > https://www.unum.capital/post/rmay2026

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Tactical Synthesis & Relative Market Update

• The Overbought Lead: Diversified Miners continue to dominate the top of the board, holding an intensely stretched position with Overbought (#1) rankings across both the Base Term and Mid Term, while sustaining a Strong (#3) Short-Term profile.

• The High-Velocity Expansion Block: Telecoms, Luxury Goods, Insurers, and Chemicals represent the primary areas where relative strength is accelerating. Telecoms and Luxury Goods have pushed into a High Bullish Momentum (#2) state in their Short-Term horizons, joined by Insurers in the Mid Term and Chemicals in the Base Term.

• Financial Splitting: While Insurers catch a fresh momentum bid, Banks have flattened into a uniform Strong (#3) profile across all three measured horizons. Concurrently, Coal Miners have captured a short-term bid, advancing into a Strong (#3) Short-Term outperformance state.

• Broad Stabilization & Base Building: The middle of the board is heavily populated by a cluster of sectors returning to baseline market-performing conditions. Platinum Miners, Gold Miners, Consumer Staples, and Hospitals have all converged to Neutral (#4) positioning across their Mid and Short-Term horizons, signaling an end to their recent structural distribution phases.

• The Capitulation Zone: Relative capital destruction remains concentrated in the bottom tiers. Technology has deteriorated further, registering a High Bearish Momentum (#6) Base-Term stance backed by a Weak (#5) Short Term. Consumer Discretionary and Paper & Pulp remain anchored to Oversold (#7) positions in the Base Term, although Consumer Discretionary has managed a tactical relief lift to a Neutral (#4) Short-Term profile.

Lester Davids

Senior Investment Analyst: Unum Capital