The JSE closed slightly lower on Thursday losing 0.19% to see the All Share Index on 77,391 points while the rand has got the bit between its teeth as it strengthens against the dollar and is trading below the R15.20/$ mark this afternoon.
“Markets are slightly disconnected, as the dollar remains on the front foot and emerging markets gain during our local session’s close.
The rand is now back at similar levels we saw last week before the escalations in Ukraine,” comments TreasuryONE.
Gold is flat for the day and currently trading at $1,927, while platinum is up 0.5% on $1,077.
Palladium traded just below $2,800 earlier this morning, but has since dropped to $2,750 and is still up 2% at current levels.
Oil hit its highest level since 2008 as rising prices continued to hit the global economy due to the fallout from the Russia-Ukraine invasion.
“Buyers are continuing to avoid Russian crude as they try and navigate financial sanctions on Russia, and traders are betting prices will keep rising. Despite the turmoil, OPEC+ is sitting on the sidelines,” reports Bloomberg.
Brent has since dropped to the $112 a barrel level.
Packaging and paper manufacturer Mondi slumped 5.84% with the news that the business is facing growing uncertainty in Russia where a fifth of its profits are generated.
Group revenue increase 16% in the year to end December 2021 due to a combination of increased sales and higher prices.
Running the other way was packaging peer Mpact, which added 3.53% to its share price.
Patrice Motsepe founded African Rainbow Minerals climbed 4.35% despite a reported 27% drop in first-half headline earnings on Thursday due to softer iron ore prices, a slowdown in steel production in China, and a resilient rand that continues to show strength against the dollar.
Mining peer Sibanye-Stillwater recorded R33 billion in profit during its 2021 financial year with group revenue increasing by 35% and a positive 2022 predicted.
Despite good financials, the group slumped 4.47% on the stock exchange.
Other mining counters Tharisa (3.97%), South32, Kumba (6.96%), Glencore (4.54%), and Anglo American (2.72%) all added, while Alphamin bucked the trend, losing 2.78%
FirstRand said it had increased operating profit growth by 6% for the six months ended December 2021.
The banking group added a healthy 4.28% to its share price.
Banking peers Standard Bank (1.47%), Nedbank (1.00%), Capitec (0.66%), and Absa (3.73%) all gained.
Santam paid R24.5 billion in claims during 2021, the largest amount in the insurer’s history but the company was still able to declare dividends for its shareholders after declaring none in 2020.
Santam declared a final dividend of 790 cents per share and a special dividend of 800 cents per share. Santam’s share price surged by 8.05% while parent company Sanlam added 4.08%.
