JSE in positive territory with rand firmer

The JSE started the second week of the month on a high note as banks and retailers rallied on the day after the rand firmed to its best level against the dollar in more than a month.

However‚ industrials and rand hedges also benefited from improved risk-on sentiment‚ as Naspers led the way‚ closing just more than 2% higher.

Analysts said global stock markets were buoyed by Friday’s higher close on Wall Street‚ which came after the nonfarm payrolls report showed that more US jobs were created last month than expected and wage inflation remained subdued.

The US stock gains came even after Washington implemented tariffs on $34bn (R455bn) of Chinese imports on Friday and Beijing responded with levies to the same value on 545 US goods.

“The moves were seen as the start of a trade war between the world’s two largest economies‚” Dow Jones Newswires reported.

The Dow was up after the JSE’s close while European markets shrugged off the resignation of two key UK ministers in the aftermath of Prime Minister Theresa May’s stated position in the Brexit negotiations‚ which pointed to a soft Brexit.

The pound weakened only marginally against the dollar on the news.

The all share closed 1.58% higher at 58,219.9 points‚ its highest level since mid-June.

The top 40 added 1.7%. Banks were up 2.95%‚ the platinum index 2.45%‚ financial stocks 1.84%‚ industrial shares 1.6%‚ food and drug retailers 1.41% and resources 1.31%. The gold index slipped 0.61%.

Anglo American Platinum jumped 3.37% to R370.45.

FirstRand jumped 3.55% to R66.50 and Standard Bank 3.02% to R197.80. Sanlam rose 3.29% to R71.25 and Discovery 2.26% to R155. Naspers closed 2.08% higher at R3‚510.

The rand firmed to a best level of R13.308 against the dollar on the day‚ before weakening to R13.3836 by the JSE’s close.

Local bonds tracked the rand‚ with the R186 bid at 8.58% from 8.645%. The US 10year treasury was at 2.8524% from 2.8214%.

The top 40 Alsi futures index gained 1.37% to 52‚110 points. The number of contracts traded was 18‚971 from Friday’s 19‚194. –

‘The moves were seen as the start of a trade war between the world’s two largest economies’ DOW JONES NEWSWIRES