JSE jumps 5% and rand over 2% on Trump-Iran ceasefire

The JSE’s benchmark All Share Index (Alsi) jumped over 5% by 11am on Wednesday and the rand firmed over 2.3%, following overnight news of the ceasefire in the Iran war announced by US President Donald Trump.

Most international stock markets rebounded strongly, while the oil price plunged to around $95 a barrel with Trump and Iran saying the Strait of Hormuz will also reopen.

Just after midday, the JSE traded 5.8% stronger and back above the psychological 120 000-points mark for the first time since early March, after the Middle East conflict broke out. It was trading around the 121 632 level at 12.30.

The rand traded around R16.44 against the US dollar.

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Gold, platinum and silver also firmed on the news. On the JSE, the Resources Index spiked over 8%, while the Top 40 and Property indices jumped 6% and over 5%, respectively.

Read:
US and Iran agree to ceasefire hours before Trump deadline
Shipowners eye Hormuz truce with 800 vessels still trapped

Impala Platinum, Valterra Platinum, Sibanye Stillwater, Northam Platinum, Gold Fields and AngloGold Ashanti led the jump in share prices, up between 8% and 13%. Other big gainers included Pepkor, TFG, Anglo American Plc, Redefine Properties and Growthpoint Properties.

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With the plunge in the oil price, Sasol also plunged around 14%.

Coal miner Thungela Resources and cement producer Sephaku Holdings were amongst the biggest losers, also falling around 14%.

Listen/read:
Investing through the Iran conflict market volatility
Wait for peace: Then buy the rebound
Selling Sasol, buying gold and PGM miners

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