JSE edges up as global risks abate
The JSE recovered on Tuesday as global markets rallied following an easing in global trade tension.
Disappointing local manufacturing data failed to dent market sentiment, with production rising a modest 0.7%, down from 2% in May, and weaker than Bloomberg’s consensus forecast of 2.2%.
A strong performance from Naspers, together with firmer mining stocks, lifted the all share following a disappointing start to the week.
UK and European markets rallied, carrying the baton over from Monday’s better showing by US markets.
“Earnings season is shaping up very well indeed, which accounts for why US equities remain comfortably ahead of the likes of Europe, but a rising tide lifts all boats and will reinforce the impression that this economic recovery and its associated bull market has further to run,” Chris Beauchamp at IG said in a note.
Optimism about global growth prospects supported Brent crude, which firmed 1.3% to $74.6 a barrel.
The Dow was up 0.7% at the JSE’s close, following in the footsteps of higher Asian and European markets. The FTSE 100 had gained 1.06% and the DAX 30 0.79%.
The all share closed 1.49% higher at 57,705.6 points and the top 40 rose 1.56%. Resources gained 1.88%, industrials 1.76%, food and drug retailers 1.65%, platinums 1.22%, property 0.82% and general retailers 0.61%. The gold index lost 0.65%.
Anglo American rose 3.13% to R300.20. Nedbank lost 1.61% to R260.14, FirstRand rose 1.04% to R67.70, while Naspers gained 2.43% to R3,328.97.
The rand benefited from a weaker dollar in choppy trade. The euro firmed to $1.1608 in intraday trade, before slipping below $1.16 again. The rand has been trading relatively robustly compared with some emerging-market currencies. The Turkish lira weakened a further 2% on Tuesday, bringing losses for the year to 37%, according to Iress data.
Local bonds recovered losses from the previous session, with the R186 bid at 8.68% from 8.73%. The US 10-year treasury was last seen at 2.9623% from 2.9428%. The top 40 Alsi futures index gained 1.38% to 51,401 points. The number of contracts traded was 21,643 from Monday’s 15,045.