Sasol leads gains as JSE tracks peers up
The JSE tracked firmer global peers on Monday as markets attempted a rebound after stronger US jobs data forced investors to delay forecasts for when the first interest rate cut would be implemented.
Labour market strength is one data point that the federal open market committee hawks will use to argue for caution on the timing of anticipated rate cuts when the committee meets at the end of the month, RMB analysts said. “Market-based probabilities continue to expect a cut in June. However, uncertainty remains high.”
At its recent meeting, the Fed reiterated that it still expected to cut interest rates this year, but needed additional confirmation that inflation was heading towards its target of 2%.
Investors will get insights on the path of US inflation when consumer and producer inflation reports are released later in the week. Economists polled by Bloomberg expect March’s consumer price index (CPI), scheduled for release on Wednesday, to increase 0.3% from the previous month and 3.5% year on year.
The JSE all share gained 0.75% to 75,334 points and the top 40 advanced 0.71%. Precious metals added 2.87%, resources 2.43%, industrial metals 1.53%, financials 0.72%, banks 0.7%, food producers 0.38%, retailers 0.16% and listed property 0.15%.
At 6pm, the Dow Jones industrial average was 0.15% firmer at 38,870 points, while in Europe the FTSE 100 gained 0.41%, France’s CAC 40 added 0.72% and Germany’s DAX 0.77%.
Sasol led gains on the JSE, gaining 7.54% to R165.08 — the most since November — after the energy and chemical company said on Monday that the environment minister had upheld Sasol SA’s appeal and set aside the decision of the national air quality officer. In July 2023, SA’s national air quality officer, who oversees the enforcement of the Air Quality Act, rejected Sasol’s request to measure sulphur dioxide emissions from its Secunda boiler plant by rate or load of emission rather than the concentration of particles.
At 6.06pm, the rand had strengthened 0.23% to R18.624/$ and 0.2% to R20.1904/€, while it was little changed at R23.5548/£. The euro was 0.13% firmer at $1.085.
Gold was little changed at $2,328.94/oz. Platinum rose 3.41% to $961.6/oz. Brent crude was 1.08% weaker at $89.57 a barrel.