JSE could gain further on Russia-Ukraine peace talks

The JSE may have another decisive session on Wednesday after Russia said it would withdraw its forces in parts of besieged Ukraine after another round of peace talks, fuelling optimism of an end to the war.

Asian stock markets were mostly higher, though rising Covid-19 cases in Shanghai and growth-throttling lockdown restrictions have tempered market optimism.

Hong Kong’s Hang Seng was up 1.31% but export-sensitive Japan’s Nikkei 225 gave up 1.40% while Australia’s ASX 200 was up 0.60%.

Commodity prices stabilised on Wednesday morning, after coming off the boil amid market optimism of the cessation of hostilities in Ukraine.

Palladium was up 2.79% to $2,215.50/oz, halting a three-day slide, during which the commodity lost as much as 15%.

Brent crude was marginally lower at $110.93 a barrel, down from last week when it fetched $120, though it was still 42% higher since the start of 2022.

The precipitous drop in metal prices has affected JSE-listed commodity shares, with Sasol losing 6% on Tuesday.

Elsewhere, the banking stocks may take a breather after hitting record highs on Tuesday, surpassing the 2018 milestone that was set when Cyril Ramaphosa became SA’s head of state. Banks are benefiting from higher interest rate environment as it boosts their margins and profitability.

The rand was steady in early trade, but remained strong on a relative basis, despite the pullback in commodity prices.

The currency was at R14.50/$, its strongest level since October, having gained 9% since the start of the year.

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