JSE firms as global markets calm down

THE JSE pushed to its best level in about a year on Friday as calm returned to global markets after an eventful week dominated by politics in the US and Brazil.

The All-Share index rose 0.67% to 54 427.30 points on the week, powered by the Industrial 25 index, which came within striking distance of its record high of a year ago.

Corporate news flow dominated individual stocks on the JSE, with Steinhoff gaining 9% in a rally that translated into a gain of R27-billion in market value.

The rally came as the consumergoods group announced a proposal to separately list its African retail assets on the JSE.

Vodacom also stood out as the best performer in the Industrial 25 index after announcing a deal to acquire a 35% stake in the Kenyan mobile operator Safaricom amounting to R35-billion.

Diversified miners rallied in sync with commodity prices.

Brent crude crossed the $53-abarrel level for the first time in four weeks on optimism that Opec would extend supply cuts when the oil cartel meets this week.

There is mounting concern that US President Donald Trump may not be able to follow through on his promised fiscal stimulus. On Thursday, a presidential corruption scandal in Brazil was one of the issues hitting emerging markets. Jane Foley, senior currency strategist at UK-based Robobank International, said: “The French election result has bolstered the euro — this is likely feeding the recent dollar weakness.”

The rand staged a strong comeback on Friday, hitting highs of R13.21/$, from lows of R13.59/$ earlier in the week.