Breakfast News: Science Strikes Back at Cancer

Axe Cap view

Cancer Breakthroughs and Market Ripples

Cancer treatment advances boost optimism, but US tech sell-off and oil gains shape local investment views.

The latest cancer drug results from ESMO 2026 bring fresh hope, especially from big pharma like AstraZeneca and Roche, whose new therapies significantly extend survival. While this uplifts health care globally, South Africa’s direct equity exposure is limited. Instead, keep an eye on the rand (USD/ZAR), which can benefit as risk appetite waxes or wanes with global pharma news and oil prices. Speaking of oil, Sasol is positioned well given rising crude prices, but remains sensitive to USD/ZAR swings. Meanwhile, the US tech sell-off—centred on AI spending jitters—is more relevant for the rand. Naspers and Prosus have exposure here but have shown resilience due to diversification. For local banks, stable US rates give FirstRand and Capitec breathing room, but consumer credit risks linger. Our view: cancer breakthroughs are exciting but won't drive near-term local market gains; the rand’s direction alongside oil and US tech trends remain the key watchpoints. this is just our opinion and not financial advice