Sibanye was the biggest winner on the JSE following the announcement that a recent change to US mining regulations will reduce costs for platinum group metal (PGM) miners in the country.
The changes stem from the US treasury’s Inflation Reduction Act (IRA): a bill that aims to grow the country’s domestic production of clean energy components. Under the new regulations, platinum and palladium producers will be allowed to claim back 10% of their production costs.
The rise in Sibanye’s share price ensured the industrial metals index led the gains on the bourse, adding 1.55%, while the oil, gas and coal index was up 1.73%.
Sibanye's share price rose by 6.91% to R22.11bringing its gains for the week to 18.74%.
The JSE all ended the day up 0.09% to 87,015 points, with the top 40 index adding 0.06%. Banks fared worst, down 1.44% and financials lost 1.04%.
Dis-Chem, FirstRand and Alexforbes were among the biggest losers on the day.
At 8.20pm, the rand had weakened 0.12% to R17.6783/$ and 0.16% to R22.9108/£. It was 0.18% firmer at R19.0835/€. The euro was 0.26% weaker at $1.0799.
The local currency ended the week 0.53% weaker following a headline in Russian media indicating a cosier relationship between SA and Russia, which is under international sanctions.
Citadel Global director Bianca Botes said the headline indicated closer ties between Russia’s State Development Bank and SA’s Development Bank of Southern Africa. “Given the current geopolitical climate, where Russia remains isolated due to sanctions, the news caused concern. Investors feared SA was strengthening ties with a nation under intense global scrutiny, triggering an SA bond sell-off and sending the rand into a tailspin.”
“However, the frenzy was a classic case of headline overreaction,” “said Botes. “As it turns out, the story was less sensational than it first appeared. The two banks quickly clarified that there was no direct credit line between them.
Among commodities gold gained 0.24% to $2,742.60/oz, while platinum lost 0.25% to $1,023.90/oz. Brent crude was 2.08% stronger at $76.04 a barrel. Gold gained 0.75% in the week due to its safe-haven nature in times of global political uncertainty.
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