JSE snaps losing streak, rand strengthens

The JSE got a welcome reprieve on Thursday, ending three successive sessions of losses, while the rand recovered to below the R19/$ level.

The JSE all share index closed 0.91% higher at 72,344.40 points, while the top 40 added 1%. Industrials rose 1.19%, banks 1.17%, financials 0.93%, resources 0.77% and precious metals & mining 0.75%.

Richemont was one of the main movers after posting a 25% rise in sales in China, including Hong Kong and Macau, countering concern about a slowdown in the region as its economy cools, reports Reuters. Its share price rose 10.85% to R2,550.31 on the JSE, the biggest increase since November 11 2022.

Northam Platinum also featureed, with its share closing up 5.34% at R129.29, reflecting a 2% jump in the platinum price. SA automotive company Motus initially recorded its biggest one-day drop since early

October after reporting that profit for the six months to end-December would fall as much as 30%. But its share price recovered, and closed 4.7% higher at R107.

Most global stock markets were higher as the dollar eased somewhat and investors continued to seek clues on the timing of US Fed rate cuts.

Reuters reported the number of Americans filing new claims for unemployment benefits fell last week to the lowest level since late 2022, suggesting US job growth probably remained solid in January. Initial claims for unemployment benefits fell to a seasonally adjusted 187,000 for the week ended January 13, according to labour department data. Economists Reuters surveyed had forecast 207,000 claims.

At 7.19pm, the Dow Jones industrial average was down 0.21%. London’s FTSE 100 closed 0.14% higher. France’s CAC 40 added 1.13% and Germany’s DAX 0.83%. The dollar was slightly weaker after reaching a onemonth peak on Wednesday. “Doubts of the dollar weakening sharply this year are growing, and traders are becoming more circumspect about their outlook,” said Andre Cilliers, Currency Strategist at TreasuryONE.

“Geopolitical events are starting to have a more significant impact, while the prospect of a Trump second term is clouding the market’s outlook for the greenback.”

The rand weakened to more than R19/$ on Wednesday and touched an intraday weakest of R19.18 on the back of the negative risk mood — the worst in five weeks. However, the local unit staged a good recovery on Thursday amid a softer greenback.

At 7pm the rand had strengthened 0.71% to R18.9243/$, 0.83% to R20.5518/€ and 0.48% to R24.0074/£.

Gold was 0.41% higher at $2,014.05/oz and platinum was up 2.08% at $898.27/oz. Brent crude was 0.26% higher at $78.25 a barrel.