MARKET WRAP: JSE pushes towards 58,000 points, led by miners

The JSE pushed higher in broad-based gains on Wednesday, with platinum miners resuming their winning streak.

Miners were supported by higher precious metal prices, while the price of oil is close to $70 a barrel, gaining about 3% so far this week due to positive economic data.

Global sentiment was risk-on again on Wednesday, boosted by reports from the Financial Times that the US and China were “90%” done with a trade agreement, although sticking points remained.

Chinese data this week has also been upbeat, with a gauge of activity in that country’s services sector earlier rising to a 14-month high, according to Dow Jones Newswires.

Local data was a little less positive, with the Standard Bank purchasing managers’ index falling to 48.8 points in March, a decline from February’s 50.2.

The all share gained 1.34% to 57,926 points and the top 40 rose 1.35%. Platinums rose 3.3%, gold miners 2.42% and general retailers 1.4%.

Sasol added 2.44% to R461.

Diversified miner Anglo American added 2.16% to R402.73, Glencore 1.94% to R61.99 and BHP 1.42% to R358.

Anglo American Platinum rose 2.74% to R783 and Impala 4.49% to R61.02.

Naspers was up 2.13% to R3,460, tracking a 3% jump by Hong Kong-listed Tencent, of which it owns 31%.

Exxaro gained 3.16% to R177.73. The price of iron ore has risen this week, after the world's largest producer, Vale, said it had failed to obtain stability certificates for 13 waste dams at one of its mines in Brazil. The dams were reviewed after a burst killed about 300 people in January.

Vukile Property Fund fell 1.09% to R20.02. It said earlier it was seeking to raise R400m in new shares to fund investments in Spain.

EOH added 1.71% to R10.68. It said earlier it expected a probe into its public-sector contracts to be completed by the end of May.

Ayo was unchanged at R15, and has not moved since Monday, when it reported that revenue increased 93% in six months to end-February. The bid for Ayo’s share — or the highest asking price in the market — was at R5, according to Iress data.

The rand was last up 0.39% to R14.1626/$, while local government bonds were marginally weaker.

Global focus remains on headlines from ongoing US-China trade talks in Washington, as well as Brexit developments. Reports on Wednesday suggested that UK Prime Minister Theresa May would seek a compromise with the opposition Labour party in a bid to get a Brexit agreement through parliament.

The major global economic release this week comes on Friday, with US nonfarm payroll numbers for March due.

Shortly after the JSE closed the Dow was up 0.19% at 26 225,77 points, while in Europe, the FTSE 100 had gained 0.31%, the CAC 40 0.79% and the DAX 30 1.63%.

At the same time platinum was up 1.92% to $865.42/oz and gold 0.11% to $1,293.78. Brent crude was 0.35% higher at $69.68 a barrel.

gernetzkyk@businesslive.co.za