JSE Sector Strategic Rankings Report

Research Notes January 2026 > https://www.unum.capital/post/rjan2026

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JSE Sector Strategic Rankings Report

1. Executive Summary: The Verdict

Precious Metals Go Vertical; Financials & Recent Winners Collapse The market has undergone a violent rotation in just two trading sessions. The "Precious Metals" complex has completely decoupled from the rest of the market to become the sole source of bullish momentum. Gold Miners have exploded from a consolidation phase into "High Bullish Momentum," joining Platinum Miners at the top of the leaderboard.

Conversely, the rest of the market is a sea of red. The "Bank Heist" has turned into a rout: Banks and Insurers have crashed into "High Bearish Momentum" in the short term, signaling aggressive institutional liquidation. Furthermore, last week's "hot trades"—Coal Miners and Telecoms—have failed spectacularly, surrendering all their recent momentum gains to drop back to Neutral or Weak.

The only survivor outside of precious metals is Chemicals and Consumer Staples, which held their ground while high-beta sectors were punished.

2. Strategic Asset Allocation View

Suggested portfolio weighting relative to the JSE Top 40 Index based on current technical posture.

🟢 Overweight (Accumulate / Ride Trend)

• Gold Miners: The New King. Short Term momentum rocketed to "High Bullish." The dormant giant has woken up.

• Platinum Miners: Trend acceleration continues. Medium Term is "Overbought," but the trend is undeniable.

• Chemicals: High Conviction Spec. The only "Deep Value" play that survived the sell-off. Retains "Strong" Short Term signal.

🟡 Neutral (Hold / Defensive)

• Consumer Staples: The last line of defense. Retains "Strong" Short Term momentum.

• Miners (Diversified): Cooled off. Dropped from "Double Strong" to "Neutral." Hold, but don't chase.

🔴 Underweight (Aggressive Sell / Avoid)

• Banks & Insurers: Crash Warning. Short Term momentum collapsed to "High Bearish." Sell rallies.

• Coal Miners: Busted Flush. The parabolic move from Jan 9 vanished. Momentum is gone.

• Telecoms: Failed Breakout. Dropped from "Strong" to "Weak." The defensive bid evaporated.

• Technology & Consumer Disc: Structural downtrends remain intact.

3. Detailed Sector Analysis by Tier

Tier 1: The "Precious" Momentum (Gold & Platinum)

• Sectors: Gold Miners, Platinum Miners

• Status: Aggressive Bull Trend

• Technical Profile (13 Jan):

  • Gold: Strong (MT) / High Bullish (ST)

  • Platinum: Overbought (MT) / Strong (ST)

• Analysis: This is a unified bid for precious metals. Gold Miners saw the most dramatic improvement, shifting from "Neutral" to "High Bullish." Investors are panic-buying gold exposure, likely hedging against the broader weakness seen in Financials.

Tier 2: The Survivors (Value & Safety)

• Sectors: Chemicals, Consumer Staples

• Status: Relative Strength

• Technical Profile (13 Jan):

  • Short Term: Strong

• Analysis: In a market where almost everything else fell, these two stood tall. Chemicals holding its "Strong" rating suggests the turnaround story is real and not just a blip. Staples remains the preferred bunker for risk-off capital.

Tier 3: The "Pop & Drop" (Failed Momentum)

• Sectors: Coal Miners, Telecoms, Diversified Miners

• Status: Momentum Vacuum

• Technical Profile (13 Jan):

  • Coal: Neutral (MT/ST)

  • Telecoms: Weak (ST)

• Analysis: A graveyard for last week's chasers. Coal went from "High Bullish" (Jan 9) to "Neutral" (Jan 13)—a complete momentum wash-out. Telecoms suffered a similar fate, proving that the defensive rotation into telcos was temporary.

Tier 4: The Financial Crisis (Banks & Insurers)

• Sectors: Banks, Insurers

• Status: Liquidation

• Technical Profile (13 Jan):

  • Short Term: High Bearish Momentum / Approaching Oversold

• Analysis: This is the most alarming signal on the board. Financials have moved from "Neutral" to "High Bearish" in just two days. This suggests a specific, aggressive seller is dumping SA Inc. exposure.

Lester Davids

Senior Investment Analyst: Unum Capital