JSE steadies on banking gains

THE JSE started the week on a firm footing yesterday as banks and financials recorded gains, while mining stocks weakened on the stronger dollar.

It was a good day for interest-rate sensitive sectors‚ such as banks‚ with shares recovering as the rand came off Friday’s worst levels.

After weakening late last week‚ the local currency was at R13.53 to the dollar at the JSE’s close‚ after hitting R13.71 last week‚ as risk-on trade dominated sentiment while inflows into the bond market also kept the rand off weaker levels.

General retailers‚ financials and banks gained on the day‚ with property stocks up from oversold levels.

The market was seeking direction after the pro-EU Emmanuel Macron won the French presidential election at the weekend‚ as expected.

Even before the first round of voting‚ Macron had been installed as the favourite for the French presidency and so his victory had largely been priced into the markets‚ Franklin Templeton analysts said.

The all-share closed 0.22% higher at 53 696.4 points and the blue-chip top 40 added 0.14%.

Banks firmed at 1.02%‚ financials 0.9%‚ general retailers 0.77% and property 0.72%. The gold index lost 1.49%‚ platinums 1.42% and resources 0.86%.

The JSE’s returns over the past two years have been well below their longer-term averages.

The last time the all-share achieved double-digit growth was in 2013‚ when the index gained 17.8%. In 2014 it was up 7.6%‚ but ended 2015 and last year at 1.85% and -0.08% respectively.

“The trend in JSE earnings has not been supportive of higher prices‚” Investec strategist Brian Kantor said.

He said movements in the rand partially explained this, but some companies with a global focus had done badly.

Among the big miners‚ Anglo American shed 1.32% to R177.01 and BHP Billiton 0.41% to R197.91.

Sasol was down 1.17% to R405 on lower oil prices. Global luxury goods group Richemont shed 0.63% to R155.37. AngloGold Ashanti was 1.86% lower at R147.7. Anglo American Platinum shed 2.8% to R305.68.