Economic growth data boost JSE

The JSE closed higher on Tuesday as better-than-expected GDP data lifted miners and shares with a primarily local focus. Gains were broad-based, led by resources and gold stocks, after the local economy grew 1.3% in 2017 on an annualised basis, ahead of market expectations and the Treasury’s forecast of 1%.

Globally, a risk-off tone reversed overnight as investors shrugged off the likelihood of US President Donald Trump’s import tariffs being implemented. Planned US tariffs on aluminium and steel are facing opposition in Washington, with pushback from senior Republicans helping to soothe investor nerves.

The all share closed 2.3% higher at 59,242.90 points and the top 40 gained 2.42%. Resources rose 3.41%, the gold index 2.88%, general retailers 2.7%, industrials 2.17%, banks 1.96% platinum 1.77% and property 1.34%.

Positive sentiment by big mining and industrial stocks permeated the market before Statistics SA released the GDP data, which set the tone for the local markets. Large-cap stocks took their cue from international markets, which brushed aside Trump’s protectionist agenda. The FTSE 100 rose 0.94% on the day.

Naspers ended the day 4.24% higher at R3,455.

FirstRand rose 0.94% to R74.90 after delivering normalised earnings growth of 7% for the six months to end-December. The dividend per ordinary share was up 9%.

Growthpoint closed 1.47% higher at a record R31.10 among property stocks. Sea Harvest jumped 6.96% to R12.30, having earlier reported profit after tax rose 103% in the year to end-December.

The rand firmed to R11.7101 to the dollar in intraday trade from R11.8316 and held up at firmer levels, trading at R11.7584 at the JSE’s close.

The rand was also supported by a rebound in the euro after losing ground against the dollar following the stalemate in the Italian elections.

Bonds gained on the rand with the R186 bid at 8.095% soon after the JSE’s close from 8.19% amid greater foreign buying. The bond market had foreign inflows of more than R3bn last week and has seen inflows of R16.3bn in February.

The top 40 Alsi futures index gained 2.69% to 52,250 points.