Picture: MICHAEL ETTERSHANK
Picture: MICHAEL ETTERSHANK

The JSE edged higher on Friday morning, with interest rate sensitive shares faring best, as the rand held onto gains it made during this week.

Dovish commentary from US Federal Reserve chair Jerome Powell has increased the chances of the Reserve Bank cutting rates later in July, boosting local banking and retail shares.

US markets reached record highs on Thursday, with the Dow pushing past 27,000 points. Sentiment was dented a little, however, after US President Donald Trump complained that the Chinese were not living up to promises to increase purchases of US farm products.

Unhappy Trump brought the trade war back in focus, reminding investors that the year-old trade battle between the US and China is far from being over,” London Capital Group senior market analyst Ipek Ozkardeskaya said.

This boosted the price of gold, although gold miners failed to benefit. A higher oil price, however, boosted diversified miners. 

At 10am the JSE was up 0.47% to 57,416.4 points and the top 40 0.29%. Banks were up 0.85% and the resources index was up 0.72%. Gold miners lost 0.99%. The all share was down 0.2% for the week.

At the same time, gold was up 0.47% to $1,410/oz and platinum 0.29% to $826.66. Brent crude was up 0.63% to $67.11 a barrel.

Diversified miner Glencore was up 1.1% to R46.88 and Anglo American 1.12% to R377.71.

Sasol was up 1.43% to R330.

Rand hedge AB InBev was down 2.07% to R1,224.90.

Woolworths was up 0.21% to R53.06, slightly extending Thursday's 7.86% surge, which followed a trading update in which the retailer said that group sales in the year to end-June rose 5.9% thanks to its SA food business. That is 3.9% when accounting for the extra week in the 2019 financial year.

Naspers was down 0.67% to R3,440.56.

gernetzkyk@businesslive.co.za