JSE firms amid mixed markets

The JSE closed firmer on Friday, while most global equities remained under some pressure with the continued volatility in the US bond market keeping investors cautious. Chemical and synthetic fuel producer Sasol performed best on the day, continuing its recent good run, rising the most since late November, up 13.95% to R223.95. It is now up 67% so far in 2021.

The JSE closed firmer on Friday, while most global equities remained under some pressure with the continued volatility in the US bond market keeping investors cautious.

Chemical and synthetic fuel producer Sasol performed best on the day, continuing its recent good run, rising the most since late November, up 13.95% to R223.95. It is now up 67% so far in 2021, but is still some way off its R650 peak reached in June 2014.

The JSE all share gained 0.78% to 68,271.19 points and the top 40 0.87%. The gold mining index rose 3.98%, resources 2.36%, banks 1.45%, platinum miners 0.78% and financials 0.49%. Industrials lost 0.29%.

The all share gained 3.23% for the week, with platinum miners, the gold mining index and banks adding weekly gains of 8.76%, 6.35% and 6.01%, respectively. The local bourse is up nearly 15% so far in 2021.

Gold Fields led gains in its sector, rising the most in 10 days, up 4.53% to R136.30. AngloGold Ashanti rose 4.19% to R316.33, Harmony 2.17% to R63.05, Pan African Resources 1.4% to R3.63, and DRDGold 1.38% to R13.92.

Some global equity markets have been under pressure since Wednesday on prospects of rising inflation as US bond yields continue their upward march. On Thursday, US Federal Reserve chair Jerome Powell sounded a gentle word of caution to the bond market, but left many investors disappointed by not indicating that the Fed might step up purchases of long-term bonds to hold down longer-term interest rates.

“The rollercoaster ride on the stock market continues. An increasing number of investors are standing on the sidelines as inflation fears intensify. Equity markets might continue to consolidate for a while,” said Axi market analyst Milan Cutkovic.

“All eyes remain on the US bond market and how the Fed will respond to rising yields. It is especially the pace at which yields are going up that is a cause of concern for many market participants, and which is threatening the stock market rally,” he said.

At 5.20pm local time on Friday, the Dow Jones industrial average was little changed at 30,929.02 points. In Europe, the FTSE 100 had gained 0.25%, while France’s CAC 40 had lost 0.51% and Germany’s DAX 30 0.63%.

At the same time, the rand had weakened 0.43% to R15.3516/$, 0.12% to R18.3113/€, while it was little changed at R21.2373/£. The euro was 0.43% weaker at $1.1923.

Gold lost 0.24% to $1,693.07/oz and platinum 0.89% to $1,117. Brent crude was 2.35% firmer at $68.72 a barrel.