Resources stocks drive JSE higher

The JSE was firmer on Monday as resources gained in an uncertain global environment, with US markets reaching new heights as they priced in President Donald Trump’s forecast stimulus policies.

European markets were also up, although Asian bourses closed lower.

Capital Economics said better emerging-market exports in recent months were apparently driven by improved demand and price effects. But they could be affected by US protectionism in the second half.

The all share closed 0.51% higher at 52,956.70 points after trading above 53,000 for most of the day. The bluechip top 40 added 0.4%.

Platinums rose 2.04%, banks 1.13%, financials 0.94%, resources 0.8%, food and drug retailers 0.79% and property 0.54%. The gold index softened 0.36%.

Diversified miner Anglo American rose 2.8% to R231.73 and Glencore 2.22% to R54.90.

Kumba Iron Ore jumped 6.37% to R225.50. ArcelorMittal was up 3.05% at R14.20.

Impala Platinum rose 2.58% to R54.51 after it said it expected a headline loss per share of 65c-79c for the half-year to December.

Standard Bank rose 1.45% to R146.62 and FirstRand improved 1.06% to R51.57.

Sanlam added 2.73% to R66.59 and MMI Holdings 3.74% to R25.49.

Cement producer PPC was 2.86% higher at R7.20 after saying it and AfriSam had revived merger talks. MTN shed 1.35% to R117.27. Aspen Pharmacare rose 2.18% to R314.05.

KAP Industrial Holdings added 3.77% to R8.25 after posting a 23% rise in first-half profit.

The rand was slightly firmer against the dollar in the early evening. Bonds also firmed with the benchmark R186 last bid at 8.715%, from 8.725% previously.

Futures tracked US and European markets higher. The near-dated top40 Alsi futures index gaining 0.43% to 46,125 points with 23,778 contracts traded, from Friday’s 32,792.