JSE Index Upbeat after Sell Pressure
The South African bourse, Johannesburg Stock Exchange (JSE), is set for a firmer open on Tuesday as upbeat sentiment across Asian bourses provides a supportive backdrop, First National Bank said in an update.
The JSE started the week on the back foot and traded lower in yesterday’s session as heightened geopolitical tensions weighed on investor sentiment following the collapse of US-Iran peace talks over the weekend, which prompted US President Donald Trump to impose a naval blockade on Iran.
By market close, the JSE All Share Index was down 0.45%, and the Top 40 Index declined 0.47%. Financials bore the brunt of the selloff, dropping 0.91%, while Industrials shed 0.76%.
Resources bucked the trend, edging up 0.05% as higher oil prices supported the sector.
According to FNB, the S&P/ASX 300 Metals & Mining Index climbed 2.26% on Tuesday, pointing to early strength among resource counters, especially given platinum’s advance towards a one-month high.
In addition, gains in gold and silver should underpin local precious metal miners. Brent crude’s softer tone could weigh on energy shares, but overall commodity momentum appears constructive at the open.
Tencent, however, slipped 0.29%, which may offer a mildly negative read-through for Naspers and Prosus. Global futures are mixed, suggesting some hesitation in the market.
On the economic calendar, early releases showed UK retail sales growing ahead of expectations, while Australian business confidence tumbled to a four-year low. In addition, China’s trade surplus narrowed as exports fell and imports surged.
FNB said the South African mining production is expected at 11:30, Fed Barr speaks at 18:45, API crude oil data will be released at 22:30, and European Central Bank President Christine Lagarde will address markets at 23:00.
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