JSE to contend with weak Asian markets and Ukraine tension on Monday

The JSE could feel the fallout from concerns the conflict in Ukraine could escalate on Monday morning, with Asian markets weaker as investors consider the potential of a conflict that could disrupt the global economy and push up energy prices.

Western officials maintain that a Russian assault in the country could occur at any time, with investors digesting a decision by Russia to extend troop exercises at the weekend.

Russian-backed separatists have also begun evacuations and called for mobilisation, but in more positive news US President Joe Biden has indicated “in principle” that he is willing to meet his Russian counterpart.

Asian markets dropped sharply at their open before recovering a little, and in early trade the Nikkei was down 0.8%, the Hang Seng 0.71%, and the Shanghai Composite 0.36%.

Tencent, which influences the JSE via the Naspers stable, lost 2.81%.

Gold was 0.2% weaker at $1,893.29/oz while platinum rose 0.28% to $1,068.01. Brent crude was 0.61% higher at $93.41 a barrel.

The rand was 0.14% firmer at R15.07/$, having lost 0.77% on Friday, which followed a relatively strong week in which SA gold miners also fared well.

Chemicals and energy group Sasol is due to report its interim results for the period ending December later, expecting a fall in headline earnings per share amid accounting adjustments and operational challenges, but profit margins have improved amid buoyant prices.

Anglo American Platinum is due to report its results for the year to end-December later, saying in a recent update headline earnings will more than double, with the group benefiting from higher prices and increased production.

gernetzkyk@businesslive.co.za