Industrials add weight to JSE

THE JSE closed slightly firmer on Friday as a weaker rand gave industrials a slight boost.

The softer currency contributed to generally higher rand hedges, with commodities flat apart from a slight increase in the oil price.

After the significant anticipation regarding the various central bank meetings this week, markets appeared somewhat fatigued, analysts at Nedbank Corporate and Investment Banking said.

The US Federal Reserve (Fed), as well as the Reserve Bank, kept rates unchanged during the week, with the Bank intimating the rate-tightening cycle may be coming to an end.

The Fed indicated one more increase in 2016 was possible, but rates were likely to remain low for a prolonged period, thereby boosting riskon trade.

The JSE all share closed 0.20% higher at 51,999.50 points and the blue-chip top 40 gained 0.29%. After a late surge, banks gained 0.43%.

Industrials rose 0.27% and resources firmed 0.21%. General retailers added 0.15%. The gold index dropped 1.09% and food and drug retailers shed 0.97%.

The market focus this week will fall on oil prices with an Organisation of the Petroleum Exporting Countries meeting aiming to curtail supply and support prices in the context of still sluggish global growth.

Brent crude was 0.38% higher at $47.70 a barrel at the JSE’s close.

Among individual shares on the JSE, Anglo American (AGL) lifted 3.17% to R168.08, while Sasol (SOL) softened 0.5% to R371.82.

Rand hedge British American Tobacco (BTI) gained 0.84% to R874.51 and SABMiller (SAB) added 0.98% to R775.50. Gold Fields (GFI) lost 1.31% to R69.10.

Nedbank (NED) was 0.56% lower at R223.25, but Standard Bank (SBK) added 0.92% to R144.45. Nampak (NPK) closed 6.25% up at R19.55.

Educational group Curro (COH) was a star performer on the day, climbing 6.13% to R45.20.

The rand lost some steam after rallying in the aftermath of the central bank decisions. At 5.40pm on Friday, the rand was at R13.6759/$ from Thursday’s R13.6514/$.

Bonds were weaker, taking their cue from a softer rand. At 5.41pm, the R186 was bid at 8.570% and offered at 8.550% from Thursday’s 8.520%.

South African futures were slightly firmer following the JSE’s marginally higher close. At 5.49pm, the Dow Jones industrial average was down 0.30% at 18,337.60 points. At the same time, the local near-dated top-40 all share futures index was 0.17% firmer at 45,880 points, with 29,360 contracts traded from 37,759 contracts on Thursday.