JSE rallies to two-week high as investors cheer Ramaphosa victory
The JSE pushed to its best level in a fortnight on Tuesday, as banks raced to record highs, having added more that R100bn to their market caps in just two sessions.
Other consumer-orientated shares gained substantially for the second day running after the country’s deputy president, Cyril Ramaphosa, was confirmed as the new ANC leader, removing the uncertainty that has kept a lid on stocks that depend heavily on the local economy.
The all share was up 1.67% to 58,669.30 points at lunchtime, logging its biggest one-day gain since mid-July, as banking stocks surged 6.63%, in line with a stronger rand environment and falling bond yields.
Despite being on a generally better footing, the rand was weaker against the dollar on the day, with the stronger environment putting pressure on big rand-hedge shares, such as Sasol and Bidcorp.
Ramaphosa narrowly beat former AU Commission chair Nkosazana Dlamini-Zuma to succeed President Jacob Zuma‚ whose tenure has been dogged by controversy. The market perceives Ramaphosa as being capable of reviving business confidence, which took a knock after two sudden Cabinet changes earlier in the year.
The other big story was Steinhoff, which was scheduled to meet its creditors after the value of its shares dropped significantly amid an accounting scandal.
Europe’s major stock indices were higher at midday, following a broadly positive lead from Asia.
FirstRand jumped 6.85% to R63.99, Standard Bank 6.46% to R196.95, Barclays Africa 7.82% to R184.91, Nedbank 5.6% to R253.43 and Capitec 3.88% to R1,039.80.
Sanlam was up 5.86% to R89.65, Discovery 6.63% to R182.33, Rand Merchant Holdings 4.45% to R46.98, and Liberty 3.6% to R124.35.
Imperial leapt 6.79% to R259.50 and Barloworld 4.68% to R161.41.
Investment group Remgro gained 2.21% to R230.99 and PSG Group 3.13% to R268.15.
Steinhoff International rose 6.13% to R9, Mr Price 6.16% to R241.52, Woolworths 5.61% to R64.38, TFG 9.62% to R186.68, and Truworths 5.39% to R92.16.
Telkom added 1.88% to R48.11 and EOH Holdings 11% to R76.58.
Anglo American improved 4.04% to R258.75, but Sasol lost 5.54% to R402.40. Kumba gained 2.88% to R383.06 and Exxaro Resources 3.43% to R160.31.
Naspers was up 1.2% to R3,279.03 while Bidcorp lost 2.25% to R284.44.