JSE recovers to a three-week high in line with global markets

The JSE pushed to a three-week high on Thursday morning, as it resumed trading after a traditional two-day break.

The all share was up about 1% to 52,599 points, as top 40 gained a similar margin.Big diversified resource stocks led the charge, as investors snapped up the recently sold down stocks such as British American Tobacco and Sasol.

Bargain hunting also evident in banks and insurance stocks, though trading volumes remained light due to December holidays.

MTN Group was the brightest spot among the blue-chip stocks, as the mobile operator reached a deal with the Nigerian authorities over the disputed repatriation of dividends from the Western African nation.

The Central Bank of Nigeria has reduced the amount it claims MTN improperly repatriated to SA from $8.1bn to $52.6m, helping to lift the lid on the company’s share price.

MTN shares surged 7.36% to R91.79, its highest since August 29, according to the Iress data. Vodacom rose 1.61% to R129.84.

The local share market took its cue from a strong rebound on Wall Street, where Dow Jones Industrial Average logged 1,000 points for the first ever in a single session.

The rebound on Wall Street, which was on a cusp of a so-called bear market, defined as a drop of 20% or more from the peak, set the positive tone for other global markets.

Japan’s Nikkei 225 regained 3.88%, though Hong Kong’s Hang Seng slipped 0.81%.

"Thankfully for investors, the relentless selling on the back of risk-off sentiment which prevailed leading up to Xmas has mercifully halted as US stock markets recorded significant gains,” said Stephen Innes, analyst at Oanda."

"It didn't take much to persuade the bargain hunters into action as early retailer reports are all pointing to a strong holiday season while investors took comfort in Kevin Hassett's, chairman of the White House Council of Economic Advisers, affirmation that Jerome Powell’s job is ‘100 per cent’ safe."

The currency markets were relatively subdued, with the rand little changed against the dollar in mid-morning trade. The yield on the benchmark R186 bond also held steady at 9%.

BHP was up 2.18% to 306.54, Sasol 1.79% to R429.54 and Kumba Iron Ore 2.38% to R280. Gold Fields was up 1.96% to R49.50 and Impala Platinum 4.13% to R35.30.

FirstRand rebounded 1.92% to  R64.83, Absa 2.91% to R159.28 and Nedbank 2.06% to R271.77.

British American Tobacco recovered 2.45% to R465.28, but was till down more than 40% so far in 2018.

mahlangua@businesslive.co.za