MARKET WRAP: JSE closes above 55,000 points for the first time in three months

The JSE edged higher in broad-based gains on Monday, with gold miners faring best, amid a positive mood on global markets.

The resumption of trade talks between the US and China lifted sentiment. Activity was, however, somewhat subdued, with US markets closed for a public holiday.

The all share gained 1.16% to 55,260 points and the top 40 rose 1.18%.

This is the first close above 55,000 points for the all share since November.

Gold miners added 3.55%, platinums 2.53%, banks 1.9% and industrials 1.21%.

Consumer inflation numbers for January are due on Wednesday, but all eyes will be on the budget policy statement later that afternoon.

The speech will be closely watched for details on how the government intends to rein in government expenditure, and recapitalise ailing state-owned enterprises. Eskom, in particular, remains a key fiscal risk, analysts said.

Investors can also look ahead to a busy week in terms of central bank messages, with minutes from latest US Federal Reserve meeting due on Wednesday. There are also a number of scheduled speeches by European Central Bank (ECB) officials.

Dovish signals from both banks have supported global equities so far in 2019.

Shortly after the JSE closed gold was up 0.34% to $1,325.66/oz and platinum 0.45% to $807.09. Brent crude was flat at $66.38 a barrel.

The FTSE 100 and DAX 30 were both little changed, while the CAC 40 had gained 0.29%.

The rand was 0.37% softer at R14.1315/$ as the JSE closed. The local currency is expected to be somewhat range bound until the budget.

Rand hedge Richemont gained 0.7% to R101.87 and AB InBev 0.47% to R1,094.79.

Adcock Ingram gained 2.69% to R66.75. It said earlier it had won a contract to supply 12% of the antiretroviral drugs that state hospitals will purchase over the next three years, equating to R1.8bn, excluding VAT.

EOH slumped 10.41% to R17.47. Microsoft has given notice to terminate its partnership with the company. Reports suggest this came after a whistle-blower filed a report with the US watchdog the Securities and Exchange Commission (SEC). EOH has appealed for anyone with evidence of wrongdoing to come forward.

Anglo American Platinum added 1.32% to R700, having earlier reported post-tax profit of R6.99bn for the year to end-December 2018, compared with R1.9bn the year before. Revenue grew to R74.6bn from R65.7bn.

Impala Platinum gained 3.68% to R50.20 and Lonmin 4.22% to R12.34.

Aveng was unchanged at 4c. It said earlier it had finalised the sale of 100% of its manufacturing business unit, Aveng Infraset, for a total consideration of R200m.

Naspers gained 1.93% to R3,115.

Capitec gained 2.27% to R1,234.17.

gernetzkyk@businesslive.co.za