JSE could be caught in global sell-off as US warns over Ukraine invasion
The alert has rippled through global equity markets, but boosted oil prices to fresh seven-year highs
The JSE is likely to start the week on the back foot, after the US warned that military conflict between Russia and Ukraine may be imminent.
The warning has rippled through global equity markets, but boosted oil prices to fresh seven-year highs.
Brent crude was up 1% to $95.45 in early trade, bringing the year-to-date gains to just more than 20%, which bodes ill for the outlook on SA inflation, hovering at a five-year high.
Higher oil prices have unlocked significant value for Sasol, whose market value has swelled R37.9bn since the start of the year.
The broader local share market is likely to trade lower on Monday, with investors using geopolitical tension as the convenient excuse to book profits after the all share index scaled record highs over the past week.
The rand, regarded as a gauge of risk sentiment, was resilient against the dollar in the context of heightened market jitters about the potential military conflict in the Black Sea region. The currency weakened just 0.24% to R15.32/$, having strengthened about 4% so far in 2022.
The gold price, which tends to rise in an uncertain environment, was marginally weaker after rising 1.7% on Friday when the US issued the warning.
The higher gold price environment could translate into higher JSE-listed gold stocks on Monday.
Other commodity prices were higher, with palladium gaining 2.55% to $2,373oz.