JSE looking better after the budget

The JSE resumed its winning ways on Friday, but it ended a choppy week marginally lower as the market sought direction from an upbeat budget amid a volatile global environment.

A well-balanced budget speech on Wednesday supported the market on the day, but risk-off sentiment following a hawkish message from the US Federal Reserve unsettled equity markets on Thursday. Sentiment turned positive on Friday amid speculation that a cabinet reshuffle by President Cyril Ramaphosa was imminent.

Although a reshuffle will present Ramaphosa with the opportunity to remove inefficient ministers, expectations are that he will proceed cautiously , as he seeks to consolidate his authority in the ANC and the government. Banks and retailers jumped on Friday on a stronger rand, while property stocks rebounded somewhat, while Resilient lost further ground.

Rand hedges were mixed, with Naspers closing lower, while British American Tobacco regained much of what it lost on Thursday. Platinum and gold shares were softer on weaker metal prices, while Brent crude rose 0.5% to $66.57 a barrel.

The all share was up 0.96% to 58,715.50 points and the top 40 added 0.95%. Food and drug retailers rose 3.13%, banks 2.03%, financials 1.38%, general retailers 1.2%, industrials 1.04% and property 0.56%. The gold index dropped 0.95% and platinums 0.49%.

Barclays Africa rose 3.2% to R203.88 and FirstRand 2.38% to R76.07. FG added 3.73% to R225.10 and Mr Price 2.39% to R287.45. The all share ended the week 0.69% lower and is down 1.33% so far this year.

The rand was last seen at R11.5731 to the dollar, from Thursday’s R11.6558. This despite the dollar edging firmer to the euro.

The local currency continued to find support from the easing of fears of further downgrades of SA’s sovereign debt rating, analysts said.

Local bonds were a little weaker after a strong performance earlier in the week. The R186 was last bid at 8.03% from 8.01% and the R207 at 6.61% from 6.57% previously.

On Friday night, the US 10-year treasury was yielding 2.8833% from 2.9189%.

The top-40 Alsi futures index rose 1.07% to 51‚726 points, but ended the week 0.73% lower.