JSE firms as all major indices gain

The JSE closed firmer on Thursday in its best one-day performance in two weeks, with all the major indices recording gains.

This was despite the Dow opening 1% weaker ahead of US President Donald Trump’s expected announcement of a new round of tariffs on EU steel and aluminium imports. The long-standing threat is almost certain to draw a response from the EU, which plans to retaliate with tariffs on US motorcycles, jeans and bourbon, Dow Jones Newswires reported.

Earlier, higher Asian markets boosted confidence on the JSE. The momentum was intact until the close, despite negative European markets.

The all share closed 1% higher at 56,157.90 points and the top 40 added 1.01%. Platinums rose 3.3%, resources 1.88%, the gold index 1.54%, general retailers 1.18%, banks 1.08%, financials 0.94% and property 0.7%.

Anglo American was up 2.78% to R302.51. Sasol rose 1.58% to R457.50 as Brent crude added 1.8% to $78.82 a barrel. British American Tobacco gained 2.69% to R648.46. Standard Bank gained 2.41% at R207.40. Steinhoff International plummeted 12.5% to R1.12. Impala Platinum added 5.3% to R20.26 and Northam 3.03% to R35.03.

The rand extended its losses against the dollar, after the euro’s strong performance in the morning fizzled out in later trade. The euro initially firmed following the release of inflation data for the eurozone, which came in at 1.9% in April, from 1.2% previously. This could be a catalyst for a more pronounced phasing out of the European Central Bank’s bond-buying programme.

Global bonds continued to recover from an Italy-driven battering earlier, with the UK 10-year gilt at 1.2206% from 1.2556%. Release of the local producer price index kept bonds stable, having risen 4.4% year on year in April from 3.7% in March, above consensus estimates of 4.2%. The yield on the benchmark R186 government bond was last at 8.60%, from 8.53%.

The benchmark US 10-year treasury was at 2.8332% from 2.8559%. The German 10-year bund yield dropped to 0.3319% from 0.3479% in continued volatile trade.

The top 40 Alsi futures index gained 1.08% to 50,014 points. The number of contracts traded was 30,208 from Wednesday’s 25,058.