The JSE was on track to break a four-day losing streak on Wednesday, while global markets were mixed as investors assessed developments around Russia’s war with Ukraine.
The rand was relatively stable, showing resilience due to the high commodity prices. At 9.36am, it had firmed 0.6% to R15.1928/$, having reached an intraday high of R15.1676/$. It strengthened 0.28% to R16.5862/€ and 0.27% to R19.9337/£. The euro was 0.16% firmer at $1.0917.
In morning trade SA’s 10-year bond had strengthened, with yields falling 10.5 basis points to 10.155%. Bond yields move inversely to prices.
The JSE all share was 0.7% firmer at 72,906.25 points by 10.20am, still 4,630 points away from the record close of 77,536 points it reached only five days ago. The top 40 gained 0.65%. Banks were up 2.83%, financials 2.52% and industrials 1.18%. Precious metals were down 0.7%, resources 0.53% and industrial metals 0.47%.
SA has benefited from a surge in commodity prices, but will now have to contend with further inflationary pressures stemming from energy costs, even as rolling blackouts continue.
Brent, the international benchmark for crude oil, jumped to as much as $133 a barrel on Tuesday after the US imposed a ban on Russian oil and other energy imports. Russia’s oil and gas exports were excluded from the initial sanctions put in place after Russian troops invaded Ukraine.
Prices remained elevated on Wednesday, with oil up 1.08% to $130.59. Gold was down 0.13% to $2,047.07/oz, while platinum added 1.08% to $130.59.
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