Weaker dollar helps boost miners

The JSE ended a generally positive week higher on Friday, as risk-on sentiment favoured retailers, while miners gained on the weaker dollar.

The all share closed lower on just one day of the week as renewed optimism about the prospects for higher economic growth in 2018 supported sentiment. An upbeat research report released by Goldman Sachs on President Cyril Ramaphosa’s “new dawn” reflected stronger growth prospects for the rest of 2018. According to Goldman Sachs, there is further upside to asset prices in SA due to the implementation of Ramaphosa’s economic reform policies. “We forecast growth of 2.4% in 2018, revised higher from a prior 1.5%,” the report stated.

The all share closed 0.72% higher at 58,422.90 points and the top 40 added 0.64%. General retailers rose 2.89%, the platinum index 2.18%, resources 1.56%, food and drug retailers 1.33%, and banks 1.09%. The all share ended the week 1.34% higher.

Anglo American rose 3.13% to R307.72, BHP added 2.35% to R283.50 and Anglo American Platinum out on 2.9% to R358.68.

Naspers was 0.44% higher to close the day at R3,199.12.

Steinhoff International shed 8.05% to end at R1.60 but Shoprite rose 1.79% to R242.66.

The Dow was marginally higher at the JSE’s close, having gained 0.35%. Fears of runaway inflation abated, to help send the Dow Jones industrial average higher for a sixth consecutive session on Thursday.

The rand was at R12.2891/$ from R12.3017. It benefited from a retreat in the dollar, which hit a snag after US inflation data underwhelmed, leaving the market doubtful about whether the Federal Reserve would be too aggressive in its interest rate hiking cycle.

The benchmark R186 bond was last bid at 8.33% from 8.38%.

The yield on US treasuries was lower, with the benchmark 10-year coming down from its recent high of 3%, indicating some flattening of the yield curve, analysts said. This meant markets were not expecting many hikes in 2018.

The US 10-year was last seen at 2.9704% from 2.9613%.

The top 40 Alsi futures index gained 0.52% to 52,175 points. The number of contracts traded was 19,330 from Thursday’s 40,944.