JSE edges up as volumes recover

The JSE’s all share index closed firmer on Tuesday as volumes recovered after subdued exchanges on Monday.

Company-specific news also supported the JSE as analysts weighed the effect of the ANC’s failure to recall President Jacob Zuma.

The all share closed 0.40% higher at 54,158 and the blue-chip top 40 added 0.35%. General retailers climbed 1.84% and resources lifted 0.75%. Property was up 0.50% and industrials gained 0.37%. Platinums shed 2.06% and golds lost 0.80%.

The platinum sector was the main loser on the day as Lonmin dragged down the sector on a weaker spot price. The platinum price shed 1.30%, to $941.71/oz.

Lonmin ended the day 7.71% lower at R13.52. The share price has fallen 42.37% so far in 2017.

Rand hedges gained on the day, with British American Tobacco rising 1.15% to R932.58.

Nampak climbed 15% to R21.85 on strong results.

The rand lost ground against the dollar and in evening trade, it was at R13.1213/$, from R12.9689/$.

Analysts say the rand is expected to remain on the back foot ahead of S&P Global Rating’s expected rating update on Friday. Moody’s announcement is also expected soon.

The market has expressed its disappointment at the ANC for failing to unseat the president at its national executive committee meeting at the weekend.

Foreign inflows in the bond market increased last week on the possibility that Zuma would be ousted.

Foreign inflows came to R5.4bn over the period, the most in seven weeks. Foreigners still favoured bonds over equities, making bond inflows the main driver last week and for the year to date, said Nedbank Corporate and Investment Banking analysts.

The benchmark R186 was bid at 8.61%, from 8.585% at the JSE’s close.

Futures tracked the firmer JSE. At 5.50pm‚ the local near-dated top-40 Alsi futures index was up 0.25% at 47‚835 points as 17,403 contracts changed hands from Monday’s 8‚468.