Mining stocks and Sasol leap on commodity prices

JOHANNESBURG – THE JSE All Share Index (Alsi) recorded a marginal recovery on Friday as Sasol, miners including Kumba Iron Ore and gold stocks strengthened as the rand weakness against the US dollar was expected to help further lift bullion producers.

The Alsi was 0.78 percent higher at 68 271.19 points after closing in the red for two consecutive days on prospects of rising global inflation as US bond yields rose again.

Petrochemicals giant Sasol hit R223.93 closing the day up 13.95 percent propelled by the strong oil price tailwind following the decision by the world’s biggest producers to extend production cuts given that the demand recovery from the coronavirus pandemic was still fragile.

Opec said during a meeting on Thursday they would largely roll over production cuts during April resulting in a surge in oil prices.

Brent crude, the global benchmark increased 5 percent to $67.55 (R1 036.70) a barrel on Thursday, and rose to $68.26 a barrel on Friday. The market digested the news. US oil prices are now above $60 a barrel after recovering from the crash a year ago.