Corporate news a boost for JSE
THE JSE closed firmer on Wednesday as a slew of company announcements boosted some of the heavyweights.
Gains were made broadly, with platinum stocks rebounding on Impala Platinum’s inclusion in the top 40 to fill the slot left by SABMiller’s imminent departure. Shareholders approved the $104bn takeover of the brewer by Anheuser-Busch InBev on Wednesday, which means that SABMiller is to be removed from all indices on Friday and delisted on Monday.
The market also reacted positively to global furniture retailer Steinhoff’s plans to raise €1.89bn in a new share issue to fund the acquisition of Mattress Firm and Poundland.
Global sentiment turned positive on the day after the US consumer confidence index for September rose to its highest level in nine years.
Concerns about troubled Deutsche Bank abated. Reports indicated the German government was working on a rescue plan for Deutsche in case it cannot pay a $14bn fine in the US.
At 5pm the all share closed 1.72% up at 51,773.50 and the blue-chip top 40 rose 1.89%. Platinums rose 3.41% and food and drug retailers gained 2.01%. Industrials rose 1.94% and resources added 1.64%. Financials firmed 1.21% and property gained 1.03%.
The Dow Jones industrial average was 0.14% higher at the opening, but later turned flat. The FTSE 100 gained 0.72%. The Paris CAC 40 rose 1.01%. The Dax added 0.91%.
Brent crude was 0.60% lower at $45.91 a barrel after Iran rejected Saudi Arabia’s oil output plan.
Anheuser-Busch InBev (ANB) closed 2.38% higher at R1,823.43. SABMiller (SAB) firmed 1.58% to R782.12.
Impala Platinum (IMP) rose 3.96% to R68.48.
Steinhoff (SNH) was 6.24% up at R80.72 amid reports that it could take over Shoprite. Shoprite (SHP) was 4.38% higher at R196.25.
MTN (MTN) was off 0.64% to R119 amid reports it illegally repatriated $14bn from Nigeria.
Investec (INP) rose 2.38% to R84.05 and Capitec (CPI) was up 1.89% to R620.50.
The rand weakened further against the dollar. At 5.43pm, it was at R13.6778 to the dollar from Tuesday’s R13.4575/$. It was at R15.3146 to the euro, from R15.0944 and R17.7762 to the pound, from R17.5235. The euro was at $1.1197, from $1.1216.
Bonds were little changed. At 5.43pm, the yield on the benchmark R186 was at 8.650% from 8.630% on Tuesday, and the R207 was at 7.835%, from 7.830% previously.
Local futures were higher in line with the JSE. At 5.36pm, the neardated top 40 Alsi futures index was up 1.68% at 45,683 points, with 35,695 contracts traded from 26,514. With Ray Fauré, Reitumetse Pitso