JSE edges up on muted reaction

The JSE all share closed marginally higher on Tuesday following a relatively muted reaction to another round of tariffs implemented by US President Donald Trump against China.

Analysts said most of the expected short-term adverse consequences have already been priced in, but China has threatened to retaliate. The new tariffs, due to come into effect on September 24, will start at 10%, before being increased to 25% at the beginning of 2019.

Rand hedges were mixed, with Naspers closing 0.83% lower at R3,179.88 and British American Tobacco down 2.37% to R699.76.

Naspers announced plans on Monday to separately list its entertainment and internet subsidiary MultiChoice.

Miners were buoyed by a weaker dollar and higher oil prices. Shortly after the JSE’s close, Brent crude had risen 1.14% to $78.80 a barrel.

Platinum stocks received a fillip from a jump in the metal price to $815.10 an ounce, a 2.5% gain.

The all share closed 0.15% higher at 56,381.30 points and the top 40 added 0.05%. Platinums rose 3.35%, the gold index 1.53%, banks 1.1%, financials 0.69% and property 0.47%. Industrials shed 0.2%. AB InBev was up 0.44% to R1,339.96. Impala Platinum rose 4.27% to R19.05. Standard Bank added 1.52% to R174.61.

The rand firmed on a weaker dollar, reaching a day’s best of R14.8119 as the euro crossed the $1.17 level for the first time in more than three weeks.

The local currency also found some support on a possible interest rate hike of 25 basis points by the Reserve Bank’s monetary policy committee on Thursday. August’s consumer inflation data, due on Wednesday, will be a crucial factor in the decision. Any rise closer to the upper end of the Reserve Bank’s 3% to 6% target may increase the likelihood of a hike. The market consensus is for the rise in the consumer price index to come in at 5.2% from 5.1% previously.

Local bonds showed little reaction to the firmer rand, with the R186 last bid at 9.26% from 9.25%.

The US 10-year treasury was at 3.0267% from 2.9898%.

The top 40 Alsi futures index gained 0.04% to 50,050 points.

The number of contracts traded was 123,440.