JSE stronger as global sentiment lifts

The JSE was firmer on Thursday morning, along with its global peers amid the hope of a possible diplomatic resolution to the Russia-Ukraine conflict.

The news that Ukraine President Volodymyr Zelensky was prepared to meet his Russian counterpart, Vladimir Putin, to discuss Ukraine’s neutrality has raised the hope of a possible diplomatic solution to the conflict and resulted in an immediate lift in risk appetite.

“Stock markets rebounded strongly in the previous session, as investors question whether the worst is already priced in. I’m certainly not convinced that this is the case, but stocks have fallen a lot in recent weeks and comments from Ukrainian President Zelensky could be viewed as a first and important step towards a compromise between Ukraine and Russia,” said Oanda senior market analyst Craig Erlam.

“Perhaps what we’re therefore seeing is a hopeful rally rather than one built on solid foundations, but it’s the first glimmer of hope we’ve had in weeks. I’d be surprised if it’s sustained for any significant period of time unless we see actual progress towards a ceasefire and Russian exit,” said Erlam.

At 9.55am, the JSE all share had gained 0.9% to 73,336.44 points and the top 40 0.85%. Financials had added 2.19%, banks 2.05%, industrials 1.42%, SA listed property 1.11% and industrial metals 0.32%. Precious metals had lost 0.56% and resources 0.14%.

Earlier in Asia, the Shanghai Composite gained 1.22%, Hong Kong’s Hang Seng 0.21% and Japan’s Nikkei 3.94%. 

The rand, which was already trading firmer, broke below R15/$ in the previous session, closing at R14.9985/$. At 9.09am, it had weakened 0.36% to R15.0521/$, 0.21% to R16.6372/€ and 0.35% to R19.8343/£. The euro was 0.14% weaker at $1.1053.

Among commodities, oil has pulled back from $130 a barrel and gold has fallen below $2,000/oz. At 9.50am, gold had lost 0.51% to $1,981.23/oz and platinum 1.34% to $1,064.50. Brent crude was 2.94% firmer at $115.28 a barrel.

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