Futures track firmer JSE despite softer Dow
South African futures extended the JSE’s gains on Friday, despite the Dow opening lower and at risk of posting a weekly loss.
Political developments around possible Russian involvement in the 2016 US elections, and concern about the pace of tax cuts, weighed on the dollar and US equity markets on Friday.
Events in Zimbabwe are expected to continue to unfold over the weekend, with Reuters citing a senior Zanu-PF official as saying that President Robert Mugabe may be sacked on Sunday, should he not agree to resign.
Monday is quiet in terms of local data, but the week will be busy. The Reserve Bank’s latest decision on interest rates is due on Thursday, and reviews by ratings agencies S&P and Moody’s are expected on Friday.
The all share closed 0.97% higher at 60‚128.40 points and the blue-chip top 40 added 0.99%. Banks rose 2.76%‚ general retailers 2.75%‚ industrials 1.4%‚ financials 1.3%‚ platinum 0.63%, and food and drug retailers 0.39%. Resources lost 0.59%.
The all share ended the week 0.59% higher‚ its seventh consecutive positive week. The index has gained 18.7% so far this year.
At 5.41pm, the Dow was 0.26% lower, with European markets also under pressure. The FTSE 100 was flat, while the CAC 40 was off 0.27% and the DAX 30 0.16%.
Gold had firmed 0.56% to $1,285.56 an ounce and platinum 0.85% to $941.39. Brent crude was up 1.23% to $62.05.
The top-40 Alsi futures index gained 1.01% to 54,300 points. It added 0.85% for the week. The number of contracts traded was 20,205 from Thursday’s 17,320.