JSE and rand firm as jitters ease
THE JSE and rand continued on their firmer path on Thursday amid a global risk-on environment as fallout from the Brexit vote faded.
Platinum shares were the main gainers after the metal firmed. At the JSE’s close the spot platinum price was 1.4% higher at $1,015.74/oz.
The market appeared to benefit from a stronger rand following a far larger-than-expected trade surplus of R18.7bn in May after a revised R127m deficit (revised from a surplus of R431m) in April. A surplus of R3bn had been expected. Exports increased 14%, while imports fell 6.6%.
Banks and financials were strong gainers on the day.
Meanwhile, prominent Leave campaigner Boris Johnson unexpectedly announced he would not stand for the leadership of the Conservative Party after fellow campaigner Michael Gove announced his candidacy. Home Secretary Theresa May is now favourite to win the leadership race to replace incumbent David Cameron, who resigned in the wake of the vote.
The JSE all share closed 0.63% higher at 52,217.70 points and the bluechip top 40 added 0.53%. Platinums gained 2.39% and general retailers added 1.4%. Banks firmed 1.23% and financials gained 1.14%.
The Dow Jones industrial average was 0.36% higher at the JSE’s close, the FTSE 100 had added 0.6% and the Paris CAC 40 had firmed 0.47%.
Among individual shares on the JSE, Anglo American (AGL) gained 1.77% to R141 and Kumba Iron Ore (KIO) rocketed 7.24% to R111.
British American Tobacco (BTI) rose 0.13% to R934.24 but Richemont (CFR) dropped 0.62% to R84.73.
Anheuser-Busch InBev (ANB) added 1.91% to R1,905.31 but SABMiller (SAB) fell 2.06% to R847.52.
In the banking sector Nedbank (NED) softened 0.05% to R186.40 but Standard Bank (SBK) climbed 1.03% to R127.80. Barclays Africa (BGA) rebounded 1.31% to R144.08.
The rand maintained its stronger trajectory on the trade surplus and lower-than-expected producer inflation in May. At 5.42pm‚ the rand was at R14.7511 to the dollar from R14.791 at the previous close. It was at R16.3763 against the euro from R16.449 previously‚ and at R19.5476 against the pound from R19.8922 previously.
Bonds were marginally weaker as investors climbed out of haven assets as Brexit jitters faded. At 5.45pm the R186 was bid at 8.84% and offered at 8.82% from a previous 8.775% close.
South African futures continued on their firmer path in line with local and global markets.
At 5.52pm, the local near-dated Alsi futures market was 0.85% higher at 46,530 points, with 30,740 contracts traded from 33,011 on Wednesday. With Madeleine van Niekerk