JSE set for another wild ride on Tuesday

The JSE was set for another wild session on Tuesday as the Russia-Ukraine showdown entered its 13th day with no end in sight.

While the local share market has held its own relative to its counterparts in Europe and elsewhere, the sell-off has gathered pace over the last two sessions.

The resource sector continues to be the silver lining, thanks to higher commodity prices such as palladium that hit record highs on Monday above the $3,000oz mark before cooling off.

Brent crude steadied at the 14-year high of $125 a barrel, boding ill for consumers and businesses already battling record high fuel prices.

However, the higher oil price has unlocked enormous value for Sasol and MTN, with the latter’s stock pushing to record highs of R208 before pulling back.

But investors in paper and packaging group Mondi and industrial group Barloworld have taken a huge hit since the war started two weeks ago, indicating the extent to which the effect of the invasion has been disparate on the local scene. Both SA companies have operations in Russia, which has been slapped with a barrage of sanctions.

Elsewhere, Asian markets slipped into the red after some of them moved higher earlier in the session despite the negative hangover from Wall Street.

The rand, which has been largely resilient in the face of the market tumult, was little changed on the day at R15.39/$.

Higher commodity prices have partly shielded the SA’s currency, as did portfolio flows. Last week, foreign investors bought R14bn worth of SA shares on a net basis, the most in months, according the JSE weekly data.

mahlangua@businesslive.co.za