MARKET WRAP: JSE higher as sentiment supports broad-based gains
The JSE closed higher on Friday in renewed global risk-on sentiment as markets took the view that the pullbacks earlier in the week may have been overdone.
At comfortably above the 54,000-point level the all share closed at its highest so far this year as industrials gained on the weaker rand and miners rebounded on firmer commodity prices in an about-turn from Thursday’s risk-off trade.
The platinum price gained 1% to $942 an ounce and gold rose 0.50% to $1,253. Gold was 2% up for the week, its best performance since mid-April.
Jitters about Donald Trump’s controversial presidency, more specifically the firing of FBI director James Comey, saw the Dow Jones industrial average experience its worst one-day fall so far this year on Wednesday.
The local market saw a recovery in the rand after concern about renewed corruption developments in Brazil had caused emerging-market currencies to fall sharply on Thursday, with the rand down 3% at one point.
At the JSE’s close the rand was 1.37% firmer at R13.2413 to the dollar, causing some of the rand hedges to lose ground. Naspers ended the day up in choppy trade, and gained a weekly 1.56%. But retailers and banks rebounded.
Local market sentiment was positive ahead of next week’s consumer inflation data and the Reserve Bank’s interest-rate decision.
The all share closed 0.42% higher at 54,427.30 points and the blue-chip top 40 added 0.4%. General retailers rose 1.97%, platinums 1.63%, industrials 0.63%, food and drug retailers 0.59%, resources 0.51%, and banks 0.37%. Financials shed 0.19%.
The all share ended the week 0.67% higher. It is up 7.45% so far this year.
Anglo American rose 1.48% to R188.73.
Kumba Iron Ore jumped 6.71% to R163.
Imperial Holdings rose 4.21% to R165.53 as the market warmed to plans mooted in the week whereby the group is set to be split into two.
Remgro dropped 1.96% to R220.75.
AngloGold Ashanti was up 1.28% to R156.98.
Anglo American Platinum rose 2.10% to R314.63.
Steinhoff rocketed 6.16% to R73.38. The group plans to merge its African interests with that of Pepkor in a separate listing.
TFG rose 2.77% to R139.77 and Truworths firmed 2.49% to R74.50. Massmart Holdings ended the day 2.55% up at R121.42.
Dis-Chem Holdings jumped 4.40% to R26.10
Sugar producer Tongaat Hulett was up 4.18% to R118.35 following its trading update in which it said it expects full-year headline earnings to rise as much as 45%.
Local bonds were also firmer as risk appetite improved after Thursday’s rout. In late trade, the yield on the benchmark R186 bond was at 8.675% from 8.76%.
At 5.47pm‚ the local near-dated top-40 Alsi futures index was up 0.46% at 48‚290 points. The number of contracts traded was 23,743 from Thursday’s 29‚261.