JSE opens firmer as Steinhoff recovers more, with Naspers subdued
The JSE opened firmer on Wednesday as retailers rebounded on the ongoing recovery at Steinhoff, while platinum stocks gained on the weaker rand.
Anglo American Platinum announced that it had made some progress on the repositioning of its assets, including selling its Pandora stake to Lonmin.
The rand closed at R13.675 to the dollar on Tuesday, but firmed slightly after the JSE’s opening.
The Dow closed 0.49% higher at a record 24,504.80 on Tuesday. Asian markets were mixed, with the Nikkei 225 falling 0.47% and the Hang Seng up 1.52%.
Despite rising longer-term risks as the global equity bull market matured, "bottom-up opportunities remained evident", Franklin Templeton analysts said.
"European stocks remained abundantly cheap relative to the rest of the world, while Asian opportunities have also been emerging," Franklin Templeton said.
At 9.31am the all share had risen 0.3% to 57,695.50 and the bluechip top 40 was also up 0.3%. The platinum index was up 0.89%, food and drug retailers 0.59%, general retailers 0.47% and industrials 0.42%.
Anglo American had added 0.56% to R252.82.
Royal Bafokeng Platinum was up 7.51% to R28.49, Lonmin 3.94% to R11.60 and Anglo American Platinum 2.16% to R354..
Steinhoff was 18.55% higher to R13.98 and Steinhoff Africa Retail 0.95% to R15.97. KAP Industrial Holdings had dropped 1.67% to R7.64, but Brait added 2.66% to R39.
PSG had shed 3.41% to R234.03 amid indications that Steinhoff intended to sell its 25% stake in the group to repay debt at the Steinhoff level.
Niche asset manager stocks were higher, after being sold off earlier on their exposure to Steinhoff assets. Sygnia jumped 8.96% to R14.60 and Coronation Fund Managers 2.99% to R68.25.
Technology group EOH rose 2.41% to R50.19 after it was announced former CEO Asher Bohbot would return to the business on a full-time contract.
Naspers rose 0.1% to R3,503.47 on muted investor reaction following a roadshow by CEO Bob van Dijk in New York on Tuesday. Van Dijk promised that the group would take measures to reduce the stock’s significant discount to fair value, thanks to its exposure to Chinese internet company Tencent.
Spur dropped 3% to R26.51.