Brisk global markets support JSE

After indifferent trade for most of the day on Tuesday, surging global markets supported the JSE for a positive start to August.

The all share closed 0.33% higher at 55,390.10 points on Tuesday, with the blue-chip top 40 gaining 0.34%. Platinums rose 1.85%, the gold index 0.71%, resources 0.47% and industrials 0.33%. Banks dropped 0.57%.

Mining shares were supported by firmer commodity prices, with platinum up 0.7% to $945/oz. Gold added 0.28% to $1,273/oz, its best level in two months. Brent crude was off 2.99% at $51.08 a barrel.

Impala Platinum gained 2.95% to R36.25 and Sibanye Gold added 3.27% to end at R17.36.

In retail, Pick n Pay closed 2.38% lower at R61.90.

Among property stocks, Indluplace was 3.02% higher at R9.89.

Tuesday’s close was the second consecutive record high for the all share, which gained 6.97% in July, its best monthly performance in 2017.

The Dow Jones had a close of 22,000 points in its sights for the first time on Tuesday, as upbeat corporate results helped the index rise 0.3%, to 21,969 points by the JSE’s close.

European markets were also higher, with the FTSE 100 up 0.71%, supported by a strong showing from Rolls-Royce, while the CAC 40 had added 0.70% and the DAX, 1.14%.

The rand weakened against the dollar, falling to R13.3103/$, before recovering to R13.2560 in late trade.

Nedbank analysts said the rand’s weakening was a result of domestic politics and a steady demand for dollars. On August 8, Parliament will vote on a motion of no confidence in President Jacob Zuma.

Bonds were largely unchanged, with the R186 bid at 8.605%, from 8.61%. Bond markets were expected to remain cautious ahead of the release of US nonfarm payrolls numbers on Friday, analysts said.

The top 40 Alsi futures index gained 0.35%, to 49,040 points. The number of contracts changing hands was 27‚166, from Monday’s 22‚275.