JSE could start week positively after drop as oil rallies
The rise in crude prices boosts local stocks such as Sasol and MTN in particular
The JSE could rebound on Monday after the all share index dropped 1% on Friday, catching its breath after record highs.
Brent crude traded at its highest level in nearly three years at $86.11 per barrel, bringing into sharper focus inflation concerns. The rally in oil prices is a boon for JSE-listed stocks such as Sasol and MTN in particular.
The near-term outlook for domestically orientated stocks seemed positive after SA’s economic heartland Gauteng officially exited the fourth wave of the Covid-19 pandemic without the economically damaging restrictions.
The Omicron variant, which is still raging elsewhere in the world, remains a risk to global economic recovery.
The rand was weaker in early trade at R15.40/$, though still 3.3% stronger year-to-date.
Elsewhere, Asian markets were mixed, with Hong Kong’s Hang Seng losing 0.77% but Japan’s Nikkei 225 gaining 0.73%.
As US markets will be closed for a public holiday on Monday, trading volumes will be lighter before the start of its reporting season for the December quarter.
Morgan Stanley, Bank of America and Neflix are some of the companies scheduled to report their results this week.
Other commodity markets were patchy on the day, with gold flat at $1,818.45/oz while palladium edged down 0.22% to trade at $1,876.10/oz.
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