Financials help JSE to firmer close

The JSE recovered from a weaker opening to close higher on Tuesday, led by a strong performance from banks and financial stocks.

Global sentiment towards equities was mildly negative for most of the day, with Asian markets mostly lower. Activity picked up as the Dow opened, with a strong performance by Boeing lifting the exchange.

The JSE all share rose 1.21% to 56,113.10 points and the top 40 1.33%. Banks gained 2.57%, financials 1.39% and industrials 1.32%. Platinums fell 0.47%. The rand was range-bound, and this is expected to continue until after the release of inflation data on Wednesday and the South African Reserve Bank monetary policy announcement on Thursday.

Oil prices have come under pressure from a resumption in Libyan exports and expectations of rising global output, reducing the prospect of local interest rate increases locally.

The Bank was likely to become concerned only if oil prices climbed towards and above $80 a barrel, said Investec chief economist Annabel Bishop. “The volatility in the rand oil price is reflective of the volatility in global markets and the Bank may choose to look through it.” Sasol fell 0.9% to R429.40. British American Tobacco slipped 1.76% to R665 and Anheuser-Busch InBev 0.92% to R1,365.

MTN was 3.29% up to R107.80, despite earlier announcing it would increase the pricing of its WhatsApp data bundles, which was met with outrage on social media.

Anglo American Platinum was down 1.65% to R362, having earlier said it was committing R2.6bn to two UK-based venture capital funds, which would pursue applications for the use of platinum group metals.

JSE Ltd rose 4.48% to R169, after an upbeat trading statement earlier.

Shortly after the JSE closed, the Dow was flat at 25,032.18 points, while in Europe the DAX 30 had gained 0.5%, the FTSE 100 0.38% and the CAC 40 0.12%. At the same time, gold had lost 1% to $1,228.49 an ounce and platinum 0.53% to $818.58. Brent crude was flat at $71.94 a barrel.

The top 40 Alsi futures index gained 1.21% to 50,022 points. The number of contracts traded was 29,025 from Monday’s 20,664.