MARKET WRAP: JSE gains for a second week
Stats SA is expected to release consumer inflation data for September next week, with a Bloomberg median forecast expecting no change, at 4.3%
The JSE capped its second consecutive week of gains on Friday as global markets mulled developments in the US-China trade war and Brexit.
Weaker-than-expected third quarter GDP growth from China further increased investor fears about the effect of the protracted trade war on economic growth. The country’s GDP growth fell to its slowest pace in almost 28 years, data showed on Friday.
The UK parliament is expected to meet on Saturday to vote on Prime Minister Boris Johnson’s latest Brexit deal. On Thursday, the EU and Britain finalised a deal for the latter to leave the EU, but the deal requires the approval of both the UK and EU parliaments.
“The controversial prime minister might have this victory in his pocket, but the fight to leave the EU by end of October is far from over, as the true challenge now lies in getting the deal approved by parliament,” treasury partner at Peregrine Treasury Solutions Bianca Botes said.
Locally, minister of mineral resources and energy Gwede Mantashe briefed the media on the latest Integrated Resource Plan (IRP), which tables the government’s plans to meet electricity demand.
The rand had its first week of losses in two weeks after it broke above R15/$ on Wednesday on news that Eskom would implement stage two load-shedding. It has, however, since recovered to below R15.
At 5.20pm, the rand had firmed 0.23% to R14.7981/$, 0.31% to R19.0664/£, and 0.13% to R16.4798/€. The euro had strengthened 0.11% to $1.1138.
Gold was flat at $1,491.55/oz while platinum added 0.58% to $890.62. Brent crude lost 0.12% to $59.79 a barrel.
Shortly after the JSE closed, the Dow was down 0.27% to 26,953.45 points. In Europe, the FTSE 100 had fallen 0.33%, France’s CAC 40 0.77%, and Germany’s DAX 30 0.28%.
Earlier, the Shanghai Composite lost 1.32% and Hong Kong’s Hang Seng 0.48%, while Japan’s Nikkei 225 rose 0.18%.
The JSE all share fell 0.48% to 55,722.80 points and the top 40 0.41%. Banks fell 1.24% while gold miners climbed 1.76%. The all share gained 0.33% in the week, following last week’s rise of 2.86%.
FirstRand dropped 1.89% to R65.99, Standard Bank 1.44% to R179.20, Absa 0.6% to R158.10, and Nedbank 0.57% to R238.94.
Harmony Gold gained 3.41% to R46.96, AngloGold Ashanti 2.02% to R306.70, Gold Fields 1.42% to R82.69 and Sibanye 1.22% to R25.81.
Tiso Blackstar Group dropped 5.41% to R3.50. The company said in an updated trading statement on Friday that its headline loss per share will widen to between 74.84c and 78.37c for the year to end-June from the 29.43c loss reported previously.
Statistics SA is expected to release consumer inflation for September next week. The median forecast is for inflation to be unchanged at 4.3%, according to Bloomberg.
Investec economist Kamilla Kaplan said, “Much of the moderating influence is expected to stem from the housing and utilities category, and specifically from slower inflation for owners’ equivalent rent and actual rentals. This reflects the effects of a weaker property market.”