JSE rallies 1.5% in cautious trade

The JSE closed firmer on Tuesday with broad-based gains, although trade will remain cautious this week.

Trade has been subdued as most Asian markets are closed for the lunar new year. As a result, the rand is expected to be fairly range-bound this week. But corporate earnings, both globally and locally, are giving the market some direction.

The FTSE 100 was lifted after oil giant BP’s profit beat expectations, lifting energy stocks generally. US markets pushed higher on Monday, led by a strong performance from tech stocks Apple and Microsoft, as corporate earnings season there continues.

Investors now await US President Donald Trump’s state of the union address, while President Cyril Ramaphosa’s state of the nation address on Thursday may also give the market some direction.

There is speculation that Trump will announce his intention to use his emergency powers to ensure the construction of a border wall between the US and Mexico. A political battle in the US over border security led to the longest US government shutdown earlier this year. The shutdown could resume if a bipartisan agreement on federal funding cannot be agreed to.

The all share added 1.53% to R54,209.4 points and the top 40 1.73%. Industrials added 2.11%, food and drug retailers 1.95% and resources 1.33%.

Shortly after the JSE closed gold was up 0.17% at $1,314.20/oz and platinum 0.21% at $822.58. Brent crude had lost 0.37% to $62.42 a barrel.

The Dow was up 0.44% at 25,350.54 points, while in Europe the FTSE 100 had jumped 1.56%, the CAC 40 1.43%, and the DAX 30 1.41%.

Curro slumped 7.47% to close at R26.51. It expects headline earnings per share to rise as much as 27% in the year to end-December.

PPC edged 0.36% higher to R5.65, despite saying earlier that cement volumes had declined by between 1% and 2% in the nine months to endDecember. Rival Sephaku Holdings rocketed 42.48% to R2.18.

Anglo American Platinum was up 0.24% to R629, having earlier gained as much as 2%. Headline earnings per share are expected to rise as much as 103% in the year to end-December largely due to increased prices of platinum group metals.

Imperial Logistics gained 1.49% to R68. It expects headline earnings per share to increase by between 18% and 31% in the six months to end-December. This is mainly as a result of lower debt financing costs.

Mpact leapt 12.24% to R23.85. Headline earnings per share for the year to end-December are expected to increase by between 15.5% and 21.6%. Naspers rose 2.72% to R3,035.33. Rand hedge Richemont gained 2.3% to R93.92, British American Tobacco 2.1% to R482 and AB InBev 1.94% to R1,051.04.