Gold shares lead widespread gains

The JSE all share posted broad-based gains on Monday.

After having been stronger for most of the day, the rand reversed gains to trade at R13.44 to the dollar in early evening trade, from Friday’s R13.40.

The all share closed 0.55% higher at 52‚187.90 points and the blue-chip top 40 added 0.67%. The gold index gained 2.44%‚ resources 1.14%‚ banks 0.74% and industrials 0.46%.

Platinums dropped 1.73% and food and drug retailers 0.25%.

Markets often drifted lower during northern hemisphere holidays, analysts said, with global equity markets under pressure in recent weeks as investors prepare for the possibility of global monetary policy tightening.

JSE-listed equities had underperformed their emerging market peers in recent weeks. Many companies had not seen the benefit of lower interest rates, which usually accompany the stronger rand and lower inflation, said Investec Wealth and Investment chief economist Brian Kantor.

He said political risk and possibly a fight over the independence of the South African Reserve Bank could defer a necessary rate cut.

Rand hedge AB InBev was up 1.01%, to R1,509, while British American Tobacco lost 0.48%, to R900.68.

AngloGold Ashanti added 2.73% to R130.72, Gold Fields 3.43% to R47.61 and Harmony 1.85%, to R21.47. Naspers was up 1.73% to R2,517.50. US stocks opened mostly lower on Monday, though modest gains in the technology sector pushed the Nasdaq composite into positive territory shortly after the opening bell, reported Dow Jones Newswires.

At the close of the JSE, the Dow Jones industrial average was flat. The FTSE 100 was up 0.43%, the CAC 40 0.62% and the DAX 0.59%.

At 5.35pm the rand was at R13.4327 to the dollar, from R13.4073 and the euro was at $1.1392, from $1.2883.

Bonds followed rand strength, with the R186 at 8.835%, from 8.93%.

The top 40 Alsi futures index rose 0.74%, to 46,210 points. The number of contracts traded was 17,627, from Friday’s 28,702.