JSE flat as curbs ease and oil rises

The JSE was little changed on Tuesday with its global counterparts mixed as investors remain cautious amid the coronavirus pandemic.

Banks and financials stood out, while miners lagged behind.

Oil prices rose on Tuesday, extending gains from the previous session, boosted by an increase in economic activity, while recently agreed oil cartel and participating producers including Russia, production cuts have come into force.

Prospects improved for fuel demand as some US states and several countries including Italy, Spain, Portugal, India and Thailand, began allowing some people to go back to work and opened up construction sites, parks and libraries, Reuters reported.

“Stock markets are making decent gains. The rebound started late in the US session on Monday and was led by energy stocks as crude prices continue to rebound strongly,” said Oanda senior market analyst Craig Erlam.

“Production cuts combined with reopening measures across the US and Europe seem to be behind the rally in oil prices, although we’re still at extremely low [consumption] levels and capacity is still fast running out,” said Erlam.

The JSE all share ended the day little changed at 49,184.16 points, while the top 40 lost 0.1%. Banks gained 3.10%, financials 1.72% and industrials 0.39%.

The gold index lost 4.77%, platinums 2.83% and resources 1.74%.

Standard Bank led gains among the big four, rising 4.22% to R99.45, followed by FirstRand’s 2.88% gain to R40.06. Absa added 2.76% to R86.29 and Nedbank 0.25% to R99.26.

Sibanye-Stillwater fell 4.71% to R35.64 and AngloGold Ashanti 4.76% to R455.09.

Gold was flat at $1,701.95/oz, while platinum gained 0.60% to $772.54. Brent crude jumped 8.97% to $30.51 a barrel.

The rand firmed against hard currencies for a second day, reaching an intra-day best of R18.2749/$. At 6.15pm, it had strengthened 0.89% to R18.3932/$, 1.47% to R19.9497/€ and 0.81% to R22.9051/£. The euro was down 0.53% to $1.0841.