JSE f irmer on Trump optimism

THE JSE closed firmer in risk-on trade yesterday as optimism swept through the market ahead of Donald Trump’s first media conference since he was elected US president in November.

Large diversified miners led the market for the second day running on rand weakness, while gold shares softened. Industrials and financial shares were firmer‚ but general retailers retreated.

Volumes are picking up slowly with turnover of R16-billion by the close‚ about three times the level of December 30‚ the final trading day of last year.

Trump was expected to unveil details on expansionary fiscal policies.

Momentum Investments analysts said tax and regulatory changes were likely to boost US confidence and rekindle investment‚ but there was great uncertainty attached to how much of Trump’s agenda would become a reality.

Global sentiment was buoyed by a firmer oil price, amid views that higher US shale production might not have an overly negative effect on oil prices. Precious-metals slipped on the stronger dollar. The JSE all-share closed 1.35% higher at 52 437.9 points with the blue-chip Top 40 adding 1.61%. Resources gained 2.78% and industrials 1.14%.

Financial shares rose 0.63%. Platinum stocks were 0.9% higher‚ while the gold index dropped 1.46% and general retailers 0.85%.

Anglo American led gains among big miners on the JSE‚ 5.43% higher at R216.65‚ and BHP Billiton rose 3.49% to R239.68.

Harmony Gold shed 1.85% to R32.45 and DRD Gold 0.9% to R7.68.

Anglo American Platinum lifted 1.6% to R297.21 and Pallinghurst 2.13% to R4.80.

Old Mutual stood out in the financial sector‚ rising 2.48% to R35.50‚ while MMI Holdings was 1.14% higher at R24.77.

Woolworths was off 1.47% to R65.23. It has lost 8.15% so far this year after ending last year 29% lower. Massmart shed 0.82% to R121.

Coronation Fund Managers improved 2% to R68.75. Mobile giant MTN slumped 4.13% to R128.37. In property‚ Capital & Counties recovered 2.31% to R48.72 and Liberty Two Degrees 1.35% to R10.49.

Reunert Ltd lost 4.69% to R67‚ but the share was trading ex-dividend.