Vehicle sales constrain JSE gains

The JSE gave back some of its morning gains on Tuesday after the release of disappointing purchasing managers’ index (PMI) numbers and substantially lower vehicle sales in April.

The rand was stronger in evening trade in a generally weaker dollar environment, having lost ground last week after the release of disappointing US growth numbers.

After growth signs in the first quarter of 2017, SA’s seasonally adjusted PMI fell below the 50-point mark in April, down to 44.7 index points, from an average of 51.9 in the first quarter.

SA’s domestic and export sales of new vehicles took a hammering in April, down 13.3% from a year earlier, to their lowest monthly total since December 2009.

The JSE all share closed 0.18% higher at 53,915.60 points and the blue-chip top 40 gained 0.14%. Banks gained 1.08%, food and drug retailers 1%, property 0.68%, financials 0.47% and industrials 0.41%. The gold index shed 1.12% and resources 0.81%.

The all share ended April 3.38% higher and is up 6.32% for the year.

In property, Resilient added 1.43% to R118.19 and Attacq 1.82% to R17.31, while Capital & Counties softened 0.61% to R54.10.

Standard rose 1.33% to R150.33 and FirstRand added 1.08% to R50.39.

Anglo American ended the day 3.89% lower at R184.46.

Sasol gained 1.54% to R416.33 after releasing production and sales data for the nine months to end-March.

Bidvest jumped 3.31% to R164.79. Sibanye shed 3.51% to R26.10 after losing 5.75% in April while retailer Spar firmed 1.43% to R182.75 and TFG 1.02% to R161.25.

Naspers rose 0.79% to R2,558.70. Mediclinic was 1.37% up to R142.95 and Sappi rose 3.21% to R102.49.

The rand was at R13.32/$ in late trade from Friday’s R13.41/$. The benchmark R186 bond was last bid at 8.68% from 8.69% previously.

Futures tracked the JSE’s gains with the top-40 Alsi index 0.1% firmer at 47,592 points. The number of contracts traded was 24,626 from Friday’s 23,595.