JSE Index Rises 3.96% as Global Risk Appetite Improves
The Johannesburg Stock Exchange (JSE) rebounded strongly on Wednesday as global risk appetite improved sharply following reports of a conditional ceasefire in the Middle East and signs of progress toward reopening the Strait of Hormuz.
Risk appetite improves with some positioning as investors see easing global macro and energy supply risks. Hence, the All-Share Index closed 3.96% higher, while the Top 40 gained 4.16%.
Resources led the charge and rose about 4.68%, buoyed by a sharp rally in gold and PGM stocks, with AngloGold Ashanti (+6.27%), Gold Fields (+4.65%), Northam Platinum (+7.93%) and Valterra (+9.66%) among the top contributors as safe haven flows lifted metal prices.
Industrials increased approximately 3.29%, led by Richemont (+5.42%) and Naspers (+4.96%) on improved global equity sentiment, while Financials advanced around 4.37%, with banks outperforming as easing oil prices reduced inflation and growth risks.
First National Bank said in its market report that the JSE is likely to come under pressure this morning amid negative cues from Asian markets, as uncertainty surrounding the ceasefire agreement between the US and Iran has sparked further angst.
The update said that while Tencent rose 0.79%, offering a positive read-through for Naspers and Prosus, a pullback is likely among resource counters, given that Australia’s ASX 300 Mining Index is down 0.67%.
FNB hinted that Brent crude’s strength may buoy energy shares with a slight uptick in gold, offering support to yellow metal producers, though platinum and palladium softness is likely to weigh on PGM miners.
The bank said overall, global futures are also pointing to a subdued start, reflective of the current anxious tone in the market. CBN Slices Interest Rates on 182, 364-Day Treasury bills
