MARKET WRAP: JSE rebounds in line with US markets, with banks up 3%
Easing global geopolitical tension and a positive research report from Moody's helped lift banks, which also benefited from a softening oil price
The JSE reversed from earlier losses to close higher on Tuesday, lifted in the afternoon by a strong opening for US markets.
Earlier in the day international markets were mixed, but geopolitical risks ebbed somewhat, after comments from the Italian Prime Minister that the country's membership within the EU was "unrenounceable".
The all share rose 1.48% to 53,241.3 points and the top 40 rose 1.54%. Banks gained 3.74%, financials 2.52% and industrials 1.87%. Gold miners lost 3.03%.
Possible conflict between the EU and Italy over that country's budget deficit, and ongoing pressure on Saudi Arabia after the death of a prominent critic, continue to grab headlines.
Local factors are currently in the back seat, but retail sales data on Wednesday, and mining production data on Thursday, will be closely watched. Domestic factors are expected to be in greater focus next week with the medium-term budget policy statement, although analysts do not expect major surprises.
The expenditure ceiling will survive, while there will be virtually no room for the government to credibly pencil in any additional taxes — beyond the usual suspects of drag and sin taxes — before the elections, said Intellidex head of capital markets research Peter Attard Montalto.
While the budget would be calm on the surface, it is likely it would be hiding some "furious kicking" underneath, while the issue of petrol prices remained a politically-sensitive issue, he said.
The oil price dipped earlier on Tuesday, heading back to the $80 a barrel level, after higher-than-expected US shale production numbers on Monday.
Diversified miner Anglo american fell 1.75% to R315.86 and Glenccore 1.14% to R59.13.
British American Tobacco slumped 3.8% to R602.31, having earlier cut its guidance for revenue from its new generation of vaping products.
PSG Holdings rose 0.61% to R212.74, after earlier reporting interim dividend growth of 10% to R1.52 per share for the six months to end-August. Recurring earnings were up 22% to R5.03 compared to the prior period.
Sibanye-Stillwater dropped 7.35% to R11.59 and Harmony Gold 4.03% to R30.01.
Firstrand jumped 4.74% to R63.70, Standard Bank 3.71% to R166.75 and Nedbank 3.39% to R240.92.
Pick n Pay lost 0.8% to R64.61, despite saying earlier that normalised headline earnings per share (HEPS) rose 17% for the 26 weeks to August 26. The interim dividend rose 17.1%.
Vodacom gained 3.31% to R123.08 and MTN 2.91% to R85.70.
Naspers rebounded 2.58% to R2,821.04, having lost 5.43% on Monday.
Shortly after the JSE closed the Dow was up 1.16% to 25,543.13 points, while in Europe, the CAC 40 was up 1.43%, the DAX 30 1.29% and the FTSE 100 0.39%.
At the same time gold had risen 0.17% to $1,228.84 an ounce while platinum was flat at $842.42. Brent crude was 0.11% lower at $80.67 a barrel.