JSE and top 40 at record highs

The JSE closed at a record high on Thursday, with broad-based gains led by platinums and banks, but trading was marred by a sharp retraction in Steinhoff, which plummeted 14% to levels last seen in November 2014. The all share rose 0.76% to 56,589, and the top 40 rose 0.74% to 50,101.5, also a record. /

The JSE closed at a record high on Thursday, led by financials, banks and platinums, as some risk-on sentiment crept back into global markets.

Interest rate sensitive stocks, including retailers, have been boosted this week by the prospect of a second interest rate cut by the Reserve Bank. This followed the release on Wednesday of Statistics SA’s inflation report for July, which analysts said confirmed disinflationary tendencies.

Momentum SP Reid Securities analysts said some sectors could be at overbought levels.

US equity markets opened modestly higher, on the back of a batch of quarterly reports on Thursday, reported Dow Jones Newswires.

On the JSE, the all share closed 0.76% higher at 56‚589 points and the blue-chip top 40 added 0.74%. Platinums rose 1.73%‚ banks 1.48%‚ financials 1.29%‚ industrials 0.60%‚ general retailers 0.51% and property 0.45%. The gold index dropped 1.57%.

Steinhoff was by far the biggest drag among blue chips, falling 9.81%, to R59.59. The sell-off came after allegations of accounting fraud.

British American Tobacco rebounded 2.36%, to R820.44 and Reinet rose 1.75%, to R28.42.

Imperial Holdings rose 6.71%, to R212.88 and Grindrod 3.09%, to R13. Gold Fields shed 3.06%, to R54.77. Standard Bank was up 2.27%, to R166.80‚ FirstRand 1.35%, to R57.01 and Nedbank 1.05%, to R218.94.

Shoprite, which is being pursued by Steinhoff, rose 1.59%, to R219.35.

Murray & Roberts was 5.48% lower at R12.93.

At 5.40pm in SA, the Dow Jones industrial average was off 0.06% and the Nasdaq 0.39%. In Europe, the CAC 40 was up 0.03%‚ the DAX 30 0.09%‚ and the FTSE 100, 0.51%.

Brent crude fell 1.51%, to $51.73 a barrel and gold 0.16%, to $1‚288.43/oz. Platinum gained 0.43% to $982.29/oz.

The top 40 Alsi futures index was 0.49% higher at 49‚841 points. The previous record high was reached on August 8. The number of futures contracts traded was 27‚475, from Wednesday’s 25‚216.