JSE may struggle on Thursday while rand holds steady at highest level since October

The JSE could struggle to find a clear path on Thursday, given the mixed picture in Asia, where Japan’s Nikkei 225 was down 0.40% but Hong Kong’s Hang Seng index edged up 0.20%.

International oil prices took a breather, with Brent crude losing 0.65% to $120 a barrel, having risen 55% since the start of 2022.

The rand, meanwhile, held steady at its highest level since late October, cushioned by higher commodity prices. The currency changed hands to the dollar at R14.76, compared with R15.56 earlier in March.

The Reserve Bank will draw most of the market attention later on Thursday when its monetary policy committee concludes its three-day meeting.

The committee, which is widely expected to increase interest rates by 25 basis points to 4.25%, could upwardly revise its inflation projections due to higher energy prices, sparked by the war in Ukraine.

Higher energy prices have coincided with the steep rise in international soft commodity prices, as both Russia and Ukraine collectively account for a quarter of global wheat exports and 18% of maize exports.

“Together with Ukraine, Russia’s share of global exports across various commodities is significant,” said Tom Wilson, head of emerging market equities at Schroders.

However, the extent to which higher prices will persist remained unclear, Wilson said.

Other commodities were weaker, with palladium easing 0.66% to $2,530/oz, having risen 33% so far in 2022.

mahlangua@businesslive.co.za