Platinums stand out on a flat JSE

The JSE all share ended the day flat on Friday after trading in positive territory for most of the day as global markets benefited from news of possible tax cuts in the US.

US President Donald Trump received a boost as the budget blueprint for 2018 was cleared in the Republican-controlled Senate on Thursday. The tax plan was approved by a vote of 51 to 49, which is likely to create a clear path for Republicans to initiate tax reform without Democratic support. The approved budget plan allows tax legislation to add up to $1.5trillion to the Federal Reserve deficit over the next 10 years to pay for the proposed tax cuts.

The all share closed 0.09% up at 57,948.70 points and the blue-chip top 40 added 0.15%. Platinums rose 2.17%, resources 0.45% and industrials 0.31%. Banks shed 2.39%, general retailers 1.81%, food and drug retailers 0.99% and financials, 0.80%.

The all share ended the week 0.12% up, its third week of gains.

Anheuser-Busch InBev improved 1.87% to R1,724.60, British American Tobacco 1.7%, to R879 and Richemont 0.07%, to R122.83.

Sibanye recovered 1.98% to R17, but Harmony dropped 1.98% to R22.23.

Impala Platinum was up 2.89% to R32.72 and Lonmin 5.83% to R15.80.

Barclays Africa declined 4.13% to R140.93, Standard Bank dropped 2.33% to R166.50 and FirstRand 2.15% to R52.79.

The rand was at R13.6962/$ from R13.5661/$ soon after the JSE closed, following the agreement on tax cuts in the US. Further tax cuts could favour equities, analysts said, and so could support the dollar.

The rand steadily weakened throughout the day on the firmer dollar, which gained 0.57% to the euro at $1.1776. The rand was also under pressure ahead of the medium-term budget policy statement this week. It was on the back foot for the whole week following President Jacob Zuma’s unexpected cabinet reshuffle on Tuesday.

The bond market was weaker, with the R186 bid at 8.820%, from 8.785%. The US 10-year bond was at 2.3857%, from 2.3199%.

The top 40 Alsi futures index gained 0.35% to 52,370 points. The number of contracts traded was 19‚861, from Thursday’s 24,065.