JSE up despite warning from Moody’s

THE JSE started the second month of the year on a positive note‚ closing above 53 000 points as resources and platinum shares climbed yesterday and the Dow Jones opened firmer.

The JSE all-share gained 4.21% last month with platinum shares the biggest gainers‚ rocketing 24%.

The Dow opened higher at the JSE’s close as Apple recorded its best quarterly revenue yet. European stocks were also firmer. South African retailers‚ property stocks and banks were weaker after Moody’s warned it would likely downgrade South Africa “in the absence of fundamental structural reforms supporting higher and sustainable medium-term growth”. S&P Global and Fitch both have the country on a BBB rating with a negative outlook‚ just one level above sub-investment grade‚ or junk.

The Moody’s rating is at present two levels above junk‚ with a negative outlook.

Sentiment was supported by new vehicle sales growing an annual 3.7% last month. Sales were‚ however‚ down in each of the past three years.

Miners were supported by stronger commodity prices‚ but gold lost ground in evening trade.

The price of copper rose to just below $6 000 a ton on the London Metal Exchange‚ its best since June 2015.

The rally in commodity markets came after the dollar had weakened earlier as volatility remained due to uncertainty over the Trump’s administration’s policies – and comments about the euro and Germany.

The JSE all-share index closed 0.6% higher at 53 104.1 points and the blue-chip Top 40 0.62%.

Platinums gained 1.4% and resources 1.08%. Food and drug retailers were up 0.74% and industrials 0.7%‚ while general retailers shed 1.45%. Property fell 0.51% and banks 0.3%. Individual industrial stocks buoyed the market‚ as did the return of African Phoenix‚ formerly African Bank.

African Phoenix was 67.74% higher at 52c‚ after opening at 31c.

Imperial Holdings recovered 1.59% to R169.46, but is still down 7.1% so far this year. Anglo American added 2.06% to R235.14 and BHP Billiton 1.25% to R247.70.

Kumba Iron Ore jumped 6.27% to R219.98.

Lonmin added 4.79% to R22.30 and Impala Platinum 1.96% to R54.49.

Barclays Africa shed 1.52% to R156.40.

Liberty Holdings added 1.09% at R111.20.

Woolworths gave up 2.59% to R72.23 and Mr Price 1.85% to R159.65. Steinhoff lifted 3.55% to R67.10. Growthpoint Properties dropped 1.06% to R26.02. Naspers gained 2.91% to R2 200. Education group AD v TECH gained 2.96% to R17.40.

But niche lender Finbond shed 5% to R2.28.