Ramaphosa election perks up JSE

The JSE ended Thursday higher as positive sentiment emanating from Cyril Ramaphosa’s election as head of state yielded broad-based gains.

Banks and platinum stocks were the biggest winners, while general retailers, financials and platinum miners all had an extremely good day. The property index was the only loser as a renewed assault on Resilient shares led the property group sharply lower.

SA’s four biggest banks — FirstRand, Standard Bank, Barclays Africa and Nedbank — added a combined R62bn in market value, with all of them reaching record highs.

Big rand-hedge stocks gained despite a far stronger currency. The all share closed 3.72% higher at 59,533.10 points, the highest daily percentage gain since December 2014, while the top 40 gained 3.97%.

Banks rose 5.78%, the platinum index 4.35%, general retailers 4.17%, industrials 3.97%, financials 3.72% and resources 3.14%. Property shed 0.13%.

Barclays Africa jumped 7.78% to R205.75, Nedbank 5.37% to R290.83, FirstRand 6.43% to R75.35 and Standard Bank 5.13% to R218.60.

Discovery raced up 9.13% R180.10 and Sanlam 7.26% to R96.

Woolworths surged 5.18% to R67, TFG 6.01% to R219.46 and Shoprite 3.36% to a record close of R260.91.

Resilient was down 11.72% to R84.75, Greenbay 12.1% to R1.38, Fortress B 7.27% to R20.40 and Nepi Rockcastle 4.12% to R119.50. Naspers closed 6.98% higher at R3,391.40. The rand powered to a three-year high to to the dollar, firming to an intraday best level of R11.59/$, before losing ground to R11.62/$ by 6.30pm.

The stronger currency brightens the outlook on inflation, which could open a window of opportunity for the Reserve Bank to cut interest rates.

Local bonds tracked the stronger rand, with the R186 bid at 8.2% from 8.4% and the longer-dated R207 at 6.790%, from 6.985%. The US 10-year treasury was last seen at 2.8894% from 2.9049%.

Attention will now shift to the budget speech next week.

Moody’s is set to follow that event with the result of its latest review of SA’s credit rating.

The top-40 Alsi futures index added 4.09% to 52‚575 points. The number of contracts traded was 41‚068 from Wednesday’s 29‚942.