On Wednesday, the JSE followed the positive performance of global markets as policymakers' efforts to secure deposits and provide liquidity eased concerns about the global banking sector. Despite this, analysts have cautioned that worries about higher interest rates potentially leading to a global recession remain present.
The JSE all share increased by 0.57% to 76,480.11 points, with industrials and industrial metals rising by 0.97% and 0.75%, respectively. However, banks, precious metals, and financials decreased by 0.42%, 0.33%, and 0.12%, respectively. The Top 40 index also rose by 0.6%.
Meanwhile, retail company Steinhoff (JO:SNHJ) suffered a significant drop of up to 25% during Wednesday's trading session, following the announcement that it plans to ask creditors to approve a restructuring plan that would leave shareholders with nothing. The company's debt, which exceeds the value of its assets by €3.5bn, renders it essentially bankrupt.
Figure 1: Steinhoff YTD Share Price (Source: Infront Terminal)
On the commodities front, Brent Crude and WTI Crude were trading at $77.44 and $73.77 a barrel, respectively. The spot price for Gold was at $1968.10, Platinum at $968.70, and Palladium at $1445.10. The rand traded at R18.11 against the US dollar, R22.31 against the British pound, and R19.63 against the Euro.
Globally, the S&P 500, Dow Jones, Nasdaq and FTSE 100 closed the day positively. In Asian markets, the Nikkei 225 and Hang Seng were up.
Market Moves
