The JSE All Share Index climbed close to 4% on Wednesday, closing at 119 166 index points, tracing a broad-based recovery across global markets. SA’s rand also strengthened.
The rally came amid improving global sentiment, with investors responding to reports of possible peace talks between Iran and the United States.
Global markets have been on a seesaw ride since the US and Israel launched strikes on Iran at the end of February, leading to sharp volatility across asset classes.
Oil prices surged in the immediate aftermath of the war, with Brent crude climbing above $100 a barrel and, at one point, reaching levels above $120 amid fears of supply disruptions through the Strait of Hormuz.
Since then, prices and equities have swung in response to changing headlines signalling either escalation or potential ceasefire agreements.
Major international indices also moved higher on Wednesday.
The FTSE 100 and DAX rose about 2%, while France’s CAC 40 gained roughly 3%. In Asia, the Shanghai Composite and Hang Seng were up around 1%, with the Nasdaq Composite and S&P 500 also edging about 1% higher.
By 6pm on Wednesday, the rand strengthened 1.45% to R16.40 against the US dollar.
Commodity markets also reacted positively. Gold rose more than 3% to $4 701, extending gains above $4 640 for a second consecutive session.
Slightly lower oil prices helped ease inflation concerns, supporting precious metals. At 6pm, Brent crude fell to just above $100 a barrel, down from a recent high of $116 reached a week earlier.
Mining stocks led the JSE’s gains. Sibanye-Stillwater and Harmony Gold each gained 10%, while Valterra, Impala Platinum and DRDGold jumped about 9%. Gold Fields and Pan African Resources gained roughly 8%.
All of the top 10 performers on the day were mining stocks.
While Anglo American also firmed, albeit by around 6% on the day, the major hit a 52-week high. Other notable stocks hitting a one-year high included Reunert, Spur Corp, MTN, BHP, Discovery Limited and Aspen Pharmacare.
On the downside, Sasol fell more than 7%, tracking the decline in oil prices. Coal producers also came under pressure, with Thungela Resources and Exxaro Resources losing around 3%. – moneyweb.co.za
