Property stocks drive JSE higher

The JSE closed firmer on Wednesday on rocketing property stocks, supported by a recovery in retailers, banks and financials.

Miners were lower on softer metal prices and as the rand hit a best intraday level of R11.8752/$, before weakening in later trade.

The all share ended the day higher for the first time in nine trading days, as confidence returned to the market, following the earlier sharp sell-off in global equities.

Some calm returned to the US bond market, benefiting local property shares, as did the firmer rand. Property stocks were among the hardest hit over the past week, with companies in the Resilient stable being hit on rumoured short-selling by hedge funds as US bond yields spiked.

The all share closed 0.9% higher at 56,886.50 points and the top 40 gained 0.65%. Property rose 7.53%, general retailers 3.94%, financials 4.2%, banks 3.42% and food and drug retailers 1.95%. The platinum index shed 2.4%, the gold index 1.54% and resources 1.42%.

Rand hedge Richemont declined 1.76% to R107.93. Glencore fell 2.69% to R62.68, Anglo American 2.47% to R273.83 and BHP 1.94% to R251.77.

Resilient jumped 11.68% to R106.60, Nepi Rockcastle 16.8% to R142.50 and Greenbay 18.01% to R1.90. MTN gained 4.48% to R128.83 Nedbank surged 5.87% to R296.96 and Barclays Africa 4.38% to R183.70. Investec was up 7.46% to R101 having announced the departure of longtime CEO Stephen Koseff on Tuesday.

The rand was at R11.9376/$ from R11.9254/$ soon after the JSE’s close in a stronger dollar environment.

The rand lost ground as clarity on the position of President Jacob Zuma remained elusive. Deputy President Cyril Ramaphosa said he was still in direct discussions with Zuma.

Local bonds were firmer amid choppy trade in US treasuries. The R186 was bid at 8.40% from 8.47% while the US 10-year treasury was last seen at 2.7937%, from 2.8020%.

Analysts cautioned that should global equities resume their rout, emerging market assets could come under significant pressure.

The top 40 Alsi futures index rose 0.81% to 50,421 points. The number of contracts traded was 36,269, from Tuesday’s 53‚536.