Rates call keeps JSE in the green

The JSE started the week in positive territory on Monday, lifted by shares sensitive to interest rates and Naspers, which reached a record high.

Banks and financials also contributed to the broad-based gains despite the weaker rand. Naspers rose after disruptions to WhatsApp services in China, which boosted Tencent’s rival messaging app WeChat.

Rates-sensitive sectors such as banks, retailers and property responded well to the 25-basis point cut by the Reserve Bank last week. But a single cut would not do much to change the underlying revenue growth prospects of these companies, said Old Mutual Multi-Managers analysts Dave Mohr and Izak Odendaal.

The all share closed 0.38% higher at 54‚368.60 points and the top 40 added 0.54%. General retailers rose 0.84%‚ industrials 0.71%‚ property 0.53% and banks 0.45%. Platinums shed 2.45% and food and drug retailers 0.65%.

Anglo American Platinum lost 1.94% to R305.47‚ Impala Platinum slumped 4.34% to R35.26 and Lonmin dipped 0.66% to R15.04.

Woolworths added 2.14% to R63.84‚ Mr Price 1.41% to R179.50 and Shoprite 0.24% to R200.30.

Group Five was down 3.34% to R19.10 after announcing an expected loss for the half-year. It also replaced eight of its board members. PPC was 9% lower at R4.45, after news that CEO Darryll Castle was leaving after three years at the helm.

Vodacom rose 1.44% to R183.10 and MTN 1.06% to R125.64.

Kaap Agri shed 2.48% to R58.50 and Zeder 3.05% to R6.67.

At 5.40pm the FTSE 100 index was down 1.23% and the DAX 0.26%. The CAC 40 was up 0.21%. The Dow Jones industrial average was down 0.33%.

At the same time, the rand was at R12.9596/$ from R12.9172. Gold was up 0.14% to $1‚256.27/oz and platinum 0.03% to $933.63/oz. Brent crude had risen 1.44% to $48.51 a barrel.

The top 40 Alsi futures index gained 0.51% to 48‚156 points. The number of contracts traded was 21‚503 from Friday’s 25‚924.