JSE higher as weaker rand lifts resources

THE JSE closed firmer yesterday‚ reversing a fourday losing streak‚ with the weaker rand boosting resources and platinum stocks.

Banks and financial stocks recovered from Monday’s retreat, following President Jacob Zuma ordering Finance Minister Pravin Gordhan to return home from an international investor roadshow.

Concern about Gordhan’s position abated somewhat, after he said he was still the finance minister.

“However‚ the situation remained fluid and potentially explosive‚” Rand Merchant Bank analyst John Cairns said.

The rand reached an intraday worst level of R13.1111/$ before recovering. The sharp retraction in the rand boosted mining stocks on the JSE‚ despite relatively flat commodity prices.

Sasol and African Rainbow Minerals were the star performers.

Industrials were up on a strong performance by Naspers after Chinese internet giant Tencent‚ of which Naspers owns 34%‚ bought a 5% stake in US electric vehicle giant and solar panel manufacturer Tesla.

The JSE all-share closed 1.13% higher at 52 309.2 points and the blue-chip Top 40 rose 1.24%.

Platinum shares were up 3.06% and resources 2.45%. Industrials added 1.09%. General retailers dropped 1.59% and the gold index retreated 1.07%.

Old Mutual Multi-Managers chief investment strategist Dave Mohr said it appeared as if investors had been overly optimistic about the prospects of US stocks. Sasol was 5.89% higher at R382.21. African Rainbow Minerals climbed 8.28% to R94.80 and Naspers 3.11% higher to R2 305.49. Imperial Holdings added 2.05% to R173.49. Anglo American Platinum rose 4.68% to R306.18. Among banks‚ FirstRand dropped 0.75% to R50.21‚ but Standard Bank firmed 0.82% to R155.27.

Capitec rose 1.38% to R807. The group said headline earnings were up 18% to end-February.

Among big retailers‚ Woolworths shed 2.13% to R72.07 and Mr Price 2.84% to R167.11. Aspen Holdings rose 1.1% to R272.97. Telkom rallied 5.67% to R76.27. – BusinessLive