JSE could ease after hitting record levels
The JSE could ease on Wednesday, a day after the all share index hit record highs — a remarkable feat at a time when other global stocks were heavily sold due to concern about how Russia’s invasion of Ukraine will affect the global economy.
Mining stocks have shielded the SA share market, whose total value has increased to more than R21.5-trillion, though individual stocks that are exposed to the Russian economy have taken a pounding since the start of the showdown last Thursday.
Platinum group metals (PGMs) and other commodity prices have broadly rallied amid worry of potential supply disruptions, benefiting mining stocks. The JSE’s resource 10 index, made up of diversified mining shares, was trading at its highest level since June 2008, according to the Bloomberg data. The leading gauge of precious metal stocks has also performed well.
However, geopolitics has taken a significant toll on individual companies, including Mondi, whose market value has shrunk by more than R38bn since the start of the invasion.
Elsewhere, Brent crude was up nearly 5% to $110 a barrel, boding ill for consumers and businesses that are already faced with record high fuel prices.
The relentless rise in oil price came despite the US and member states of the International Energy Agency releasing 60-million barrels of oil reserves to contain prices.
Asian markets were mostly weaker on Wednesday, after a negative handover from Wall Street. But Australia’s ASX 200 bucked the trend, boosted by mining shares.
The rand was relatively flat at R15.40/$.
Source: businesslive.co.za