Bourse starts upbeat on stable rand

The JSE began the fourth quarter upbeat on Monday, with a stable rand and improved global risk sentiment providing a supportive environment.

But gains were pared in the afternoon with some indices turning negative after being up earlier, while a 0.51% rise by Naspers to R3,067.30 ensured a positive close.

The all share ended the day 0.15% higher at 55,789.8 points and the top 40 0.13%. Banks fell 0.7% and financials 0.36%. Industrials rose 0.47% and food and drug retailers 0.41%.

The US and Canada struck a lastminute trade deal on Sunday, saving the North American Free Trade Agreement. Global stocks were cheered by the news, but local developments were less supportive. The Central Energy Fund said earlier that the price of fuel would rise about R1 a litre from midnight on Tuesday, but banks and retailers showed little reaction.

The seasonally adjusted Absa purchasing managers index (PMI), which gauges activity in the manufacturing sector, came in earlier at a weak 43.2 points in September, from 43.4 in August. The PMI was reflective of weak operating conditions, including supply driven inflation and subdued consumer activity, said Investec economist Lara Hodes.

New-vehicle sales data for September were 2.6% lower than the previous September’s.

US stocks opened firmly higher, with the S&P 500 yet again reaching a record high.

Rand hedge British American Tobacco fell 2.48% to R651.21, while Richemont gained 0.89% to R117.10. FirstRand fell 2.02% to R66.50. Clicks gained 3.73% to R181.52. Alexander Forbes surged 12.53% to R5.57, after announcing the appointment of Dawie de Villiers as CEO.

Group Five gained 5.56% to 95c ahead of its results for the year to endJune on Tuesday. The company said in August it expected a loss per share of R13-R14.50, 56.8%-74.9% worse than in the prior matching period.

Shortly after the JSE closed, the Dow was up 1% at 26,721.71 points, while in Europe the FTSE 100 lost 0.14%, the CAC 40 gained 0.15% and the DAX 30 0.64%.

At the same time, gold fell 0.33% to $1,188.30 an ounce while platinum firmed 0.46% to $820.92. Brent crude was 0.87% higher at $83.57 a barrel.