JSE edges higher as gold improves

After a weak opening, the JSE all share closed higher on Wednesday after turning positive at midday when gold shares gathered strength and resources recovered despite mixed commodity prices.

By the JSE’s close, spot gold had added 0.23% to $1,245.65/oz but platinum was 0.18% lower at $922.59.

The all share closed 0.47% higher at 51,402.70 points and the blue-chip top 40 gained 0.54%. The gold index firmed 2.39%, food and drug retailers 1.36%, resources 1.05%, property 0.75%, and industrials 0.48%. The platinum index lost 0.40%, general retailers 0.35% and banks 0.22%.

Anglo American was up 2.16% to R162.21, Glencore 1.83%, to R46.84 and BHP 1.34%, to R190.08. Kumba Iron Ore rebounded 4.03%, to R147.50, but African Rainbow Minerals lost 2.97%, to R72.94.

In banks, FirstRand was up 0.51%, to R47.24, but Capitec lost 0.46%, to R794.26.

Old Mutual gave up 1.36%, to R32.57, but Sanlam recovered 1.62%, to R65.14.

MTN rose 2.58%, to R113.61, while Vodacom lost 2.19%, to R161.50 and Telkom 0.78%, to R64.95.

The rand was steady at R13.0456/$, from R13.0895/$ as the dollar weakened against the euro, but gained against the pound.

Local bonds showed little reaction to consumer inflation for May, released earlier in the day, as a lower inflationary trend had largely been priced in.

The yield on the benchmark R186 bond was last unchanged at 8.53%.

Consumer inflation remained within the Reserve Bank’s 3%-6% target range in May, with the consumer price index ticking up to 5.4%, from 5.3% in April.

At 5.31pm local time, the Dow Jones was 0.20% lower at 21,423.31 points.

Futures tracked the firmer JSE, with the local near-dated, top-40 Alsi futures index 0.39% higher at 45‚464 points.

The number of contracts traded was 27,749 from Tuesday’s 35,134.