JSE faces firmer Asian markets on Tuesday as platinum extends its gains
The expectation of US stimulus supports global markets, while platinum is at a seven-year high partly due to SA supply concerns
The JSE may benefit from firmer Asian markets on Tuesday morning, with commodities extending their gains and the platinum price at a seven-year high.
US stimulus prospects are still supporting global markets, with analysts saying the recent acquittal of former President Donald Trump will allow legislators to resume focus on a spending bill.
Commodities, including oil and platinum, have jumped so far this week, with oil rising amid cold weather in the US and tension in the Middle East.
Platinum was at a seven-year high on Tuesday morning, boosted by enthusiasm surrounding hydrogen-energy adoption, as well as supply concerns in SA centred on the pace of the vaccine rollout, Axi chief global markets strategist Stephen Innes said in a note.
While the rest of the world remains optimistic regarding a vaccine-driven recovery, the SA government is sending 1-million AstraZeneca doses back to India following a small study showing the vaccine is ineffective against the local variant, Peregrine Treasury Solutions executive director Bianca Botes said in a note.
The JSE’s platinum index rose 5.59% on Monday.
In morning trade on Tuesday the platinum price was up 2.29% to $1,330.76/oz while gold added 0.45% to $1,825.64. Brent crude was 0.58% higher at $68.63 a barrel, having risen about 4% over the past two sessions.
The rand was 0.17% firmer at R14.40/$, remaining at a one-year high against the dollar.
The Hang Seng was up 1.8% and Japan’s Nikkei 1.82%.
Tencent, which influences the JSE via Naspers, had lost 0.66%.
DRDGold is scheduled to release its half-year results to end-December later, with headline earnings per share (HEPS) expected to more than double amid elevated precious metal prices and higher production.
Pan African Resources is also due to release its interim results to end-December later, likewise expecting a hefty rise in HEPS amid higher gold prices and gold sold.
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