US jobs data give bourse a leg up

The JSE closed firmer on Friday as strong US jobs data pointed to a stronger US economy, supporting the reflation trade under President Donald Trump’s administration.

It was the all share’s first positive close in six sessions.

US nonfarm jobs created in February amounted to 235,000, more than the expected 190,000. A total of 227,000 jobs were created in January. The US unemployment rate edged down to 4.7%, from 4.8% in January. The rise boosted the case for a rate hike by the Federal Reserve’s open market committee on Wednesday.

Local platinum and resource stocks firmed in later trade while industrials, mainly rand hedges, benefited from a weaker rand. The rand firmed sharply and was at R13.1472 to the dollar in late trade, from R13.3398 on Thursday.

General retailers and banks rose on positive sentiment emanating from expected higher US growth.

The all share closed 0.7% up at 51,269.50 and the blue-chip top 40 added 0.8%. General retailers added 1.21% and industrials rose 1.15%. Banks were up 0.9% and platinums gained 0.47%. The gold index shed 2.37%.

The all share ended the week 0.85% down, 1.22% up for the year.

Among the miners, Kumba Iron Ore gained 6.22% to R185.19. Coal producer Exxaro rebounded 8.86% to R113 after shedding 8% on Thursday.

Among rand hedges, British American Tobacco rose 0.36% to R818.29 and Richemont 0.46% to R98.90.

Gold Fields dropped 3.89% to R38.03 and Sibanye 3.57% to R24.01.

FirstRand gained 0.93% to R51.22, Nedbank 1.95% to R255.15, and Standard Bank 1.43% to R155.95.

Old Mutual softened 0.55% to R36.18 on its reduced dividend.

Woolworths rose 2.04% to R70.91, Mr Price 1.29% to R171.35, and Pick n Pay Stores firmed 1.63% to R70.95.

Bonds were also firmer, with the benchmark R186 bid at 8.685% in late trade from 8.7% on Thursday.

At 5.45pm, the local near-dated top-40 Alsi futures index was 0.76% higher at 44,261 points.