South African stocks took a dip at the end of the week as they lost earlier gains buoyed by positive companies’ earnings and closed in the red, with investors increasingly worried that surging commodity prices due to the Russia-Ukraine crisis might add to global inflation.
Oil prices climbed to nearly $120 per barrel on Thursday, the highest it has been in nearly ten years while palladium’s gains surged to a seven month high. These are not unconnected to expected shortages in Russia which is one of the largest producers of both commodities.
The Johannesburg all-share index – JALSH fell by 0.19% and closed at 77,390 points while the Top 40 index- the JTOPI lost 0.25% and closed at 70,882 points. Technology growth stocks were some of the losers that drove JTECH down by 2.24%.
Market leaders Napsers and Prosus both declined by 1.95% and 2.80% respectively.
Meanwhile, the South African rand traded 15.36 to the US dollar, a 0.88% from the previous day, as a strong commodity price, which South Africa has in abundant capacity, served as a buffer within the current market.
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