Broad gains as JSE plays catch-up

The JSE all share ended the shortened week and last trading day of September on a high note, as industrials, retailers and gold stocks lifted the market 1.06% on Friday, in what proved to be a choppy week.

The gains were broad-based as the market played catch-up with its global peers. US markets recorded highs following the release of President Donald Trump’s tax reform plans and further mixed signals from the US Federal Reserve in chairwoman Janet Yellen’s hawkish speech.

The weaker rand during the week supported resources and rand hedges, while retailers and banks benefited from a slight comeback in the domestic currency on Friday.

The all share closed 1.06% higher at 55,579.90 points and the blue-chip top 40 added 1.09%. Food and drug retailers added 1.48%, general retailers 1.46%, industrials 1.32%, the gold index 1.26% and resources 0.94%. Platinums dropped 1.02% and property 0.22%.

The all share ended the week 0.47% lower but is still 9.73% higher for the year.

Anglo American was the best performer among the big miners on the day, closing 2.53% higher at R242.41. Lonmin dropped 2.26%, to R12.54.

Rand hedge Richemont rose 1.22%, to R122.90. Naspers ended the day 1.92% higher at R2,920 as the market warmed to its announcement of a R10bn deal to increase shares in online food-ordering group Delivery Hero.

Shoprite gained 1.61%, to R206.89 and Steinhoff 1.27%, to R60.03.

The rand was at R13.5227 to the dollar soon after the JSE’s close, after firming to R13.4252 in intraday trade. It was supported by positive trade data for August, when SA recorded a trade surplus of R5.94bn. The year-to-date surplus of R43.45bn is a big improvement on the R13.67bn deficit for the comparable period in 2016.

Domestic bond yields were lower as the market firmed on the steady rand and a softer dollar.

The top 40 Alsi futures index rose 1.22%, to 50,226 points. The number of contracts traded was 19,708, from Thursday’s 19,477.