JSE softer in cautious trade ahead of Mboweni’s budget

Miners were lower on the sharp drop in Brent crude in overnight trade after Saudi Arabia said it would make up for supply disruptions from US sanctions targeting Iran’s petroleum exports from next month.

Brent crude recovered 0.22% to $76.32 a barrel soon after the JSE opened.

The Dow closed 0.5% lower in choppy trade on Tuesday, which saw the US market down 2% at one point. The Nikkei 224 gained 0.37% on Wednesday while the Hang Seng slipped 0.51%.

Naspers was 1.27% weaker at R2.646.95 soon after the opening.

The rand was largely unchanged at R14.24 to the dollar, despite the US currency remaining at firmer levels below $1.15 to the euro.

“Pressure on global stocks persist, but markets managed to avoid a large scale sell-off,” FxPro analysts said.

Bellwether US stocks such as Caterpillar and 3M were down 10% at one point before buyers entered the market again. 

 Volatile trade usually supports gold, but the metal price was flat at $1,230.84/oz in early trade, dragging gold stocks on the JSE down in the stronger rand environment.

At 9.45am the all share was 0.67% lower at 50,824.80 points and the top 40 had lost 0.82%. The gold index dropped 2.63%, platinums 1.8%, general retailers 0.66% and industrials 0.56%. Banks added 0.44% and property 0.29%.

BHP retreated 2.39% to R278.11.

Sibanye-Stillwater shed 3.54% to R10.91 and AngloGold Ashanti 3.07% to R141.27.

FirstRand rose 0.55% to R60.16 and Absa 0.71% to R141.50.

Quilter shed 1.99% to R21.15. The group said in a trading update for the third quarter that gross flows into Quilter Investors rose 10% to £4.3bn.

Shoprite lost 1.2% to R184.20.

Mondi was down 1.56% to R321.72.

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