The JSE ended the week on a positive note as news that Russian President Vladimir Putin is ready to hold talks with the Ukrainian government following its invasion the day before of its neighbour brought calm to the markets.
The 0.72% jump in the All Share index was in line with a recovery in global equities on reports that China’s leader Xi Jinping told Putin he should negotiate with the government in Kyiv and after the US and its allies imposed new sanctions on Russia.
Bloomberg reports the dollar and gold retreated, signalling flagging demand for havens. Oil also retreated from seven-year peaks above $100 a barrel to last trade at $97.31.
Gold turned the tide, dropping 0.81% to last trade below the $1,900-level an ounce after hitting the highest level in a year in the previous session. The yellow metal was last quoted at $1,888.50. Palladium plunged 2.79% to last trade at $2,350.50, while platinum was flat at $1,062.00.
Commodity stocks tracked the decline in metal prices, with Harmony diving 9.20%, Sibanye-Stillwater 7.55%, Anglogold 7.43%, Gold Fields 6.07%, DRDGold 5.27% and Northam 4.37%.
Investors dumped Massmart (-6.38%) on rumours of a planned looting of the retailer’s stores – which include Makro, Game and Builders Warehouse – in KwaZulu-Natal this weekend. Members of crime intelligence in KwaZulu-Natal have been tasked with verifying the claims that were doing the rounds on social media.
Automotive counters SuperGroup and Motus also lost – 4.44% and 3.28% respectively.
Returns were spread across sectors, with industrial counters AB Inbev (5.45%), Alphamin (10.62%) and Thungela Resources (6.48%) piling on the gains.
Hammerson added 5.71% after the shopping centre operator said it has sold its Victoria Gate and Victoria Quarter shopping centres in Leeds, England for £120m.
Steinhoff soared 16.62% after the retailer said its revenues grew by 10% in the last quarter of 2021 as it was able to boost sales despite the reintroduction of Covid-19 restrictions in Eastern Europe.
On the tech front, Bytes Technology clawed back some losses of the previous session to end the day up 3.42%, but Prosus and Naspers were down 0.99% and 0.61% respectively. Sasol slumped 1.76%.
In the currency markets, the rand regained composure as the Russian ruble paused its slide and the dollar weakened, with the local unit strengthening 1% to last trade at R15.19/$. This follows two days of volatile trade in which the currency rapidly moved between R15.00 and R15.50 against the US dollar as Russia started the war in eastern Europe. “The rand continues to remain resilient and trades in line with other EMs this afternoon,” comments TreasuryONE.
Markets have now taken in a wait-and-see stance on the Russia/Ukraine offensive as Ukrainian President Volodymyr Zelenskyy has stated that some Russian advances ‘’have been stopped in most directions”, according to TreasuryONE.
