Power plays and politics: JSE braces

Overnight global mood

Wall Street closed on Wednesday in a holding pattern; US inflation whispers and Fed rate expectations are keeping equities cautious. London and European bourses traded sideways overnight with energy stocks catching a breather on oil's modest retreat. Asia's open this morning followed suit, neither spooked nor excited, which means the JSE opens to a backdrop of quiet global risk-off tone — the kind where local sentiment matters more than overseas winds.

Today's big stories

• Eskom strikes a conciliatory tone on tariffs. The power utility's chairman is whispering good news about electricity prices as it lurches toward a year without load-shedding. The catch? It's still drowning in debt, ageing infrastructure, and a customer base that keeps shrinking like the rand in a currency crisis. Energy sector stocks will watch this speech for clues about whether tariff pressure eases or remains the elephant in every boardroom. Read more.
• Stephen Koseff's blueprint for SA: Split Eskom, fix Joburg, rethink BEE. The former Investec CEO sketched a one-year presidential fantasy that includes unbundling Eskom into three units and partnering with private capital to salvage Johannesburg. Investors will parse whether this represents serious policy thinking or just the sort of thing billionaires say when they're bored. Either way, it signals the desperation for structural change. Read more.
• S&P Global flags a double blow: politics and external headwinds. The ratings agency is watching whether South Africa's coalition government can hold itself together while facing external pressure on growth and credit worthiness. This is not shock news, but it's a reminder that our coalition relies on trust, and trust is in shorter supply than diesel. The markets will test this resolve soon enough. Read more.
• Brian Joffe checks out to Tel Aviv. One of SA's wealthiest entrepreneurs is now based in Israel, focusing on philanthropy rather than building SA empires. It's the kind of "brain drain" headline that makes policy makers wince but investors wonder: are the smart money moving on. Read more.

Sector watch

Energy stocks get primary billing today: Eskom's tariff commentary will ripple through utilities and industrial exposure. Financials deserve attention too, given the ratings agency warning about coalition stability and external headwinds; banks price in political risk and growth fears. Infrastructure and large-cap industrials are where you'll find defensive positioning if sentiment wobbles. Keep one eye on the rand as it digests all this talk of structural reform and coalition wobbles. It's the shadow player in every trade.

One thing to watch

Eskom's tariff narrative. If the utility's chair walks back price demands or signals a softer hand, energy-dependent stocks (and the broader JSE) could catch a bid. If pricing pressure persists regardless, expect another round of margin margin anxiety to filter through the industrial complex. Either way, this is the JSE's most reliable bellwether for investor mood in May 2026.