JSE may benefit from positive Asian session on Friday

The JSE looks set to benefit from a positive Asian session on Friday morning, and the week has been one of general recovery for global markets after weeks of pressure.

Sentiment has improved in the wake of US Federal Reserve minutes from its last meeting, which have indicated the possibility of a pause in its interest rate hiking cycle later in the year.

Rising inflation and concerns about possible recession have put pressure on risk assets over the past two months, but US markets are on track to snap a seven-week losing streak on Friday, while the JSE will need to lose about 2.8% to close where it did last week. The local bourse had risen a similar amount on Thursday, having its best day in more than two months.

A positive earnings report from e-commerce giant Alibaba was helping its shares lift more than 12% on Friday morning, with Asian markets green across the board, also benefiting from hopes China is emerging from its latest wave of Covid-19.

In morning trade the Hang Seng had risen 2.77%, while both the Shanghai Composite and Japan’s Nikkei had gained 0.52%.

Tencent, which influences the JSE via the Naspers stable, had gained 2.39%.

Gold was 0.17% higher at $1,853.54/oz while platinum had firmed 0.43% to $952. Brent crude was up 0.2% to $117.20.

The rand was 0.36% firmer at R15.67/$, almost 20c firmer than it was last Friday.

The economic calendar is bare on Friday, but information security group and microcap ISA Holdings is due to report its results for the year to end-February. It has flagged a profit rise of more than a fifth during the period, but it has not gone into details.

Property group Rebosis, which has a diversified portfolio spanning commercial and retail assets, is due to release results for its half year to end-February later, but it has not released a trading update, implying no major swings in its profit.

gernetzkyk@businesslive.co.za