JSE a bit higher as markets take cautious view about Kim-Trump meeting
The JSE opened slightly up on Tuesday as markets reacted with subdued trade to the historic meeting between US President Donald Trump and North Korean leader Kim Jong-un in Singapore.
Some analysts welcomed the Korean leader’s commitment to the "complete denuclearisation" of the country’s nuclear arms arsenal. Others said what Trump had done was to elevate a rogue leader, shunned by most of the world, to the level of a world statesman.
TreasuryOne analyst Andre Botha said the focus in markets was still on the central bank meetings on Wednesday and Thursday, when the US Federal Reserve will announce an expected rate hike of 25 basis points.
The European Central Bank (ECB) could announce a winding-down of its stimulus policies later in 2018.
"With some confusion in the market, we have seen emerging-market currencies bearing the brunt of the uncertainty," he said.
Central banks in India and Turkey tightened policy as the prospect of US Fed tightening and protectionism intensify emerging-market pressure, Barclays Research analysts said.
The rand was largely unchanged at about R13.16 to the dollar after weakening to R13.28 last week.
British American Tobacco led the rand hedges at the opening on an upbeat trading update, with Naspers not far behind.
The Dow closed flat on Monday. Asian markets were marginally higher on Tuesday, with the Nikkei 225 adding 0.33% and the Hang Seng 0.30%.
At 10.03am the all share was 0.20% higher at 58,260.40 points and the top 40 added 0.21%. Food and drug retailers added 0.4%, industrials rose 0.37%, the platinum index 0.33%, banks 0.19% and financials 0.18%. Property dropped 0.37%.
Sasol rose 1.28% to R494.27. Brent crude rose 0.74% to $76.962 a barrel.
British American Tobacco firmed 0.77% to R661.45. "The group remains on track for another good year of adjusted constant currency earnings growth," it said.
Standard Bank added 0.8% to R204.82, but FirstRand slipped 0.44% to R60.71.
Growthpoint was 0.33% off at R26.84. Fortress B lost 3% to R15.50.
Naspers lifted 0.28% to R3,347.14.