Inflation data lead market higher

The JSE firmed on Thursday but ended the shortened trading week a little lower, as positive local data and a slightly softer dollar lifted all the bourse’s subindices.

Global markets have been jittery since Monday, as the dollar jumped along with US treasury yields, leading investors to shy away from risk assets. Local banks led the gains on the day, while miners also benefited from the pause in the dollar’s rise. Oil prices headed towards $75 a barrel, with speculation the US would withdraw from the 2015 nuclear deal with Iran.

Local data were positive, with producer price inflation slowing to an annual rate of 3.7% in March, from 4.2% in February.

Food and drug retailers failed to cheer the news of food price deflation — of 1.1% — in March, but the month was likely to be the bottom end of the inflation cycle and price pressures would have intensified in April, said Investec economist Lara Hodes.

General retailers were higher, despite an 11.31% drop to R1.96 by Steinhoff International. This followed news that former chairman Christo Wiese was looking to compel payment of R59bn from the global retailer.

The all share closed 0.82% higher at 57,453 points and the top 40 gained 0.89%. General retailers rose 2.06%, banks 1.52%, the platinum index 1.17%, financials 1.14%, industrials 0.81% and food and drug retailers 0.41%.The all share ended the week 0.22% lower.

British American Tobacco gained 1.88% to R676.13. Sasol jumped 3.48% to R443.20. Barclays Africa rose 3.2% to R176 and FirstRand 2.22% to R65.73.

Mr Price added 3.79% to R272 and Woolworths 1.48% to R63.61.

Resilient rose 1.86% to R65.80 and Nepi Rockcastle 0.89% to R136.

Naspers ended the day 1.47% higher at R2,995, while Sappi gained 1.8% to close at R81.44.

At 5.40pm, the Dow was up 0.86% to 24,292.66 points, while the CAC 40 had gained 0.78%, the DAX 30 0.59% and the FTSE 100 0.48%. Gold had lost 0.44% to $1,317.39/oz and platinum 0.33% to $907.42. Brent crude had firmed 0.65% to $74.52.

The top 40 Alsi futures index added 0.85% to 51,180 points. The index fell 0.08% for the week. The number of contracts traded was 13,350 from Wednesday’s 21,718.