JSE follows global markets higher

The JSE began the week on a positive note, with the market waiting for policy signals from central banks. Despite a weaker rand, interest rate sensitive stocks such as banks and financials rallied, with the latter buoyed by good results from Discovery.

The all share was back above 56,000 points, with analysts warning momentum could ease on Wednesday, when the US Federal Reserve releases its latest policy statement.

Locally, consensus is for the Reserve Bank to cut interest rates for a second time this year on Thursday.

The monetary policy committee had in recent years placed great emphasis on SA’s external vulnerabilities, despite the negative effect on the weak domestic economy, said Old Mutual Multi-Managers strategists Dave Mohr and Izak Odendaal.

The all share closed 0.73% higher at 56‚050.10 points and the blue-chip top 40 gained 0.94%. Banks rose 2.67%‚ financials 1.35%‚ industrials 0.61% and resources 0.53%. Gold shed 3.08% and platinum 2.03%.

Kumba Iron ore ended 2.93% lower at R214. Richemont added 1.71%, to R121.54, but British American Tobacco shed 0.64%, to R843.56.

Harmony Gold fell 5.35% to R26.03‚ AngloGold Ashanti 3.97%, to R126.23 and Gold Fields 2.37%, to R56.75.

Impala Platinum ended the day 3.01% lower at R33.20.

FirstRand rose 3.18%, to R54.56‚ Standard Bank 2.75%, to R161.12 and Nedbank 2.4%, to R205.50.

Discovery gained 2.82%, to R146 after earlier reporting a 20% increase in diluted headline earnings a share‚ to 682.5c‚ for the year to end-June.

European and US markets were higher‚ with all three major US indices reaching records. At 5.40pm, the Dow had gained 0.35%‚ the S&P 500 0.27% and the Nasdaq 0.39%.

Gold was off 0.58% to $1‚308.44/oz and platinum 0.62% at $959.87. Brent crude lost 0.88%, to $54.99 a barrel.

The top 40 Alsi futures index gained 0.62%, at 49‚600 points.

The number of contracts traded was 95‚464, from Friday’s 47,192. /