JSE faces pressure on Wednesday as oil rout continues
The JSE will open to weaker Asian markets on Wednesday morning, with the oil price continuing its fall overnight.
Brent crude oil was down more than 10% in morning trade, due to concern over slowing demand for energy, as well as lack of storage space. This could put further pressure on Sasol, which fell almost a quarter in morning trade on Tuesday, although it pared most of its losses before the JSE closed.
The US Senate on Tuesday approved a new stimulus package worth almost $500bn, while the bourse in Johannesburg will also react to news of a local stimulus package worth R500bn. The social and economic support package announced by President Cyril Ramaphosa includes a R200bn guaranteed loan support programme for local businesses.
The rand, however, was weaker on Wednesday morning, on track for its third consecutive session of losses, and weaker than the R19/$ level.
Asian markets were weaker, with Japan’s Nikkei down 1.32% and Hong Kong’s Hang Sen 0.53%. Tencent, which influences the JSE via Naspers, which is its largest shareholder, was up 0.95%, and could help lift the local bourse.
Gold was down 0.16% to $1,682.50/oz while platinum fell 0.23% to $743.55. Brent crude was 15.21% lower at $16.68 a barrel.
There is little on the local economic calendar on Wednesday while Octodec Investments, which owns properties in the Pretoria and Johannesburg central business districts, is due to release its interim results to end-February. The group said recently due to the Covid-19 pandemic it is reconsidering its payout ratios.
Source: businesslive.co.za
