Banks, financials offset weak rand
The JSE closed higher on Thursday as bank and financial shares rose despite rand weakness.
The all share firmed 0.37% to 58,743.6 points and the top 40 0.42%. Banks and financials were the biggest contributors to gains with the indices adding 1.46% and 1.51%, respectively.
Investec Ltd rose 3.3% to R94.36, Absa 2.67% to R168.65, Nedbank 2.42% to R272.50, FirstRand 0.87% to R68.50, and Standard Bank 1.51% to R202. In financials, Alexander Forbes added 1.66% to R5.52, Liberty 3.51% to R107.13, MMI 3.59% to R18.49, Coronation 2.46% to R52.39, Discovery 3.42% to R148.98, Sanlam 3.28% to R79.01, and Old Mutual 1.26% to R23.28.
Golds fell after the US Federal Reserve said it was unlikely to raise interest rates soon. This weighed on the sector, with the index falling 3.4%. Sibanye-Stillwater was the biggest loser, down 6.99% to R12.51. Harmony Gold fell 5.09% to R23.29 and AngloGold Ashanti 3.48% to R166.31. Earlier, Harmony released a production update for the nine months to March 31. It said higher electricity prices pushed its costs from R520,000/kg to R540,000, but it was on track to meet its production guidance of 1.45-million ounces. Platinum miners relinquished 2.09%, with Lonmin the biggest loser, down 6.16% to R12.19.
General retailers gained 1.3%, with TFG up 2.29% at R189, Woolworths 1.45% at R48.40, and Mr Price 1.72% at R220.35. The latter made its debut on the A2X exchange, but will maintain its primary listing on the JSE. It joins the likes of Naspers, Standard Bank and Sanlam with secondary A2X listings.
EOH continued its recovery, leaping 17.24% to R23.94, while Vodacom gained 2.02% to R117.65. Naspers firmed 0.98% to R3,690.80.
Property shares were mostly higher, with the index adding 0.34%. Redefine gained 1.02% to R9.95, Fortress A 1.04% to R19.47, and Capital & Counties 1.75% to R46.
At 6pm, the rand had fallen 0.6% to R14.5422/$, 0.48% to R16.2609/€ and 0.45% to R18.9539/£. The euro was 0.13% lower at $1.118.
Gold was down 0.44% at $1,270.98/oz and platinum 1.86% to $851.98. Brent crude had its biggest drop since Friday, as a result of record production in the US, where stockpiles rose to 2017 levels. It was last 3.08% lower at $70.42 a barrel.
Absa’s purchase managers’ index (PMI), released earlier climbed to 2.2 points to 47.2 in April. This indicates continued contraction in the manufacturing sector, with the gauge still below the 50-point neutral mark. Absa attributed the slight increase to a “lack of load-shedding” in April.
Following mixed markets in Asia, European markets were mostly lower, with the FTSE 100 down 0.46% and France’s CAC 40 down 0.85%; Germany’s DAX 30 was flat. The Dow was 0.86% lower after the US Fed decision, last trading at 26,209.24 points.