JSE Relative Sector Analysis

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

Trade Local & Global Financial Markets with Unum Capital.

To get started, email tradingdesk@unum.co.za

Coal Miners, Telecoms, Chemicals, and Hospitals are the dominant leaders on the board, with all four sectors locking in Strong momentum in the Short Term. Chemicals and Coal Miners are particularly robust, carrying their strength through from High Bullish and Strong Long-Term foundations. On the turnaround front, Luxury Goods and Consumer Staples have staged significant rallies, moving from Weak Long-Term ruts to establish Strong momentum in the Short Term. Conversely, the precious metals complex is under severe pressure, as Gold Miners and Platinum Miners have both deteriorated into Weak regimes across the Medium and Short terms. Diversified Miners and Banks, while still structurally sound in the longer horizons, are visibly cooling as they settle into Neutral and Strong Short-Term consolidations. Finally, Technology, Insurers, and Consumer Discretionary remain largely Neutral in the immediate term, while Paper & Pulp continues to languish in a persistent Weak state.

Key Sector Shifts Breakdown

• Broadening Strength: Coal Miners, Telecoms, Chemicals, Hospitals, Consumer Staples, and Luxury Goods all currently exhibit Strong short-term momentum.

• Structural Leaders: Diversified Miners remains a long-term powerhouse (High Bullish), though it has moderated to a Strong short-term reading.

• Precious Metals Breakdown: Both Gold Miners and Platinum Miners have shifted from Neutral/Strong long-term stances into Weak medium and short-term trends.

• Momentum Cooling: Banks and Insurers have stepped back from Strong medium-term trends to finish the period with Neutral short-term momentum.

• Stabilizing Laggards: Technology and Consumer Discretionary have managed to climb out of Weak and Oversold long-term positions to reach a Neutral short-term footing.

• Persistent Weakness: Paper & Pulp remains trapped in a bearish cycle, characterized by Weak momentum in both the Medium and Short terms.

Lester Davids

Senior Investment Analyst: Unum Capital