Buoyant global scene supports SA

The JSE began the week on a positive note on Monday, in line with buoyant global bourses, and markets largely welcomed local corporate news.

The JSE, however, pared earlier gains, with banks and retailers closing lower despite a strong start to the session. The rand remained at a threeyear high to the dollar.

Firmer precious metal prices and an optimistic tone on international markets supported miners.

The week, however, is littered with expected commentary by global central bankers, with data releases also including inflation readings for both the US and euro area.

Despite signs of rising inflation, it was likely central banks would be overly hawkish, said Old Mutual Multi-Managers analyst Izak Odendaal. “The global backdrop therefore remains supportive for SA, with strong global economic growth, firmer commodity prices.”

The all share closed 0.26% higher at 58‚868.90 points and the top 40 gained 0.22%. Resources climbed 1.78%‚ the gold index 1.36% and property 0.98%. Food and drug retailers shed 1.3%‚ banks 0.74%‚ platinums 0.27% and industrials 0.17%.

Anglo American ended 3.07% higher at R296.05.

After gaining more than 4% in intraday trade‚ Sasol settled 1.43% higher at R400.16.

Beer giant Anheuser-Busch InBev rose 2.46% to R1‚253.65 and British American Tobacco 0.65% to R724.65.

In the gold sector Harmony added 3.59% to R24.24 and highly geared Sibanye-Stillwater 2.37% to R11.68.

Steinhoff leapt 7.01% to R5.65 and Woolworths 3.45% to R67.25. Massmart rose 2.14% to R162‚ bringing its gains to 17.06% so far in February.

Resilient jumped 5.11% to R72‚ Fortress B 3.04% to R15.95‚ Nepi Rockcastle 5.55% to R123.49 and Greenbay 6.98% to R1.38.

At 5.40pm the Dow was up 0.67%‚ with European markets also firmer. The FTSE 100 was up 0.63%‚ the CAC 40 0.37% and the DAX 30 0.15%.

At the same time gold was up 0.31% to $1‚332.40 and platinum 0.25% to $995.81. Brent crude was off 0.23% to $67.15 a barrel.

The top 40 Alsi futures index rose 0.27% to 51,800 points. The number of contracts traded was 15‚359 from Friday’s 14‚925.