Industrials Reit, Sasol lead JSE higher

Industrials Reit and Sasol led the gains on the JSE on Monday, with global markets mixed, while the rand was weaker along with other emergingmarket currencies as a surprise cut in oil production sparked fresh inflation concerns.

Investors were caught off guard after Opec+ announced a surprise production cut of more than 1-million barrels a day from May, abandoning previous assurances that it would hold supply steady and posing a new risk for the global economy.

Brent crude rose almost 8% to an intraday high of $85.32 a barrel, the highest level in more than four weeks. At 5.59pm local time, it was up 6.21% at $84.68.

The rand broke a four-day winning streak, weakening to an intraday worst level of R17.9566/$, as “the surprise move by Opec+ and the jump in the dollar saw the rand retreat,” said TreasuryONE currency strategist Andre Cilliers.

At 6.22pm, the rand had weakened 0.15% to R17.8021/$, 0.58% to R19.3807/€ and 0.79% to R22.0639/£. The euro was 0.45% firmer at $1.0887.

Shares in chemicals and energy group Sasol rose the most since November on higher oil prices. The company’s share price closed 5.67% firmer at R253.62.

Shares in UK-based Industrials Reit gained the most on record, after the company said it received the vital terms of a possible final cash offer from a new entity that will be controlled by one or more investment funds managed by global private equity firm Blackstone. The company’s share price rose 37.5% to R35.75.

The JSE all share index closed 0.68% firmer at 76,615 points, while the top 40 added 0.65%, with most big indices firmer.

“Oil prices are back above $80 a barrel and a spike in prices adds another threat to an economy already struggling from rate hikes and recent turmoil in the banking sector,” said Lukman Otunuga, senior research analyst at FXTM.

At 5.55pm, the Dow Jones industrial average was 0.65% firmer, while markets in Europe were mixed.

Gold gained 0.91% to $1,987.30/oz, while platinum lost 0.14% to $991.10/oz.