JSE breaks its losing streak

Miners and resources led the gains on the JSE on Monday, while global markets were firmer as traders sought to take advantage of last week ’ s sell-off. The all share index broke a three-day losing streak on Monday after falling 4.86% last week. The resources index gained the most in five days, rising 2.6%, with Sasol its best performer, gaining 6.7% to R209.30.

Miners and resources led the gains on the JSE, while global markets were firmer as traders sought to take advantage of last week’s sell-off.

The all share broke a three-day losing streak on Monday after falling 4.86% last week when markets fretted over the spread of the Delta variant of Covid-19, talks of stimulus tapering in the US and further action by market regulators in China.

The resources index gained the most in five days, rising 2.6%, with Sasol its best performer. The chemicals and synthetic fuel producer gained 6.7% to R209.30 — the most since June.

Investors will focus on the Jackson Hole symposium starting on Thursday in the US. The event is often used as a forum for big announcements. US Federal Reserve chair Jerome Powell’s address will be scrutinised for indications of when tapering might begin.

“We’re starting off the week in a corrective manner, with the moves late last week being partially reversed as calm returns to the market,” said Oanda senior market analyst Craig Erlam. “Traders became far more riskaverse last week, particularly on Thursday following the release of the Fed minutes a day earlier. Perhaps too much was read into them or maybe the selling was opportunistic,” he said.

“We expect the markets to be on the fence for most of the week leading up to the keynote address by Jerome Powell at the Jackson Hole symposium. The market is waiting for any news on tapering and the path of the US economy from now on,” he said.

“Renewed ‘risk-on’ sentiment could drive the risky assets a bit stronger leading up to Jackson Hole.”

The JSE all share gained 1.24% to 66,829 points, its best one-day gain in eight sessions, and the top 40 was 1.27% firmer. Precious metals rose 4.6%, banks 2.01%, financials 1.71% and industrial metals 1.52%.

Northam Platinum led the gains in the precious metals sector, rising the most since February, up 7.88% to R205.05. Impala Platinum added 7.53% to R222.15 and Anglo Platinum 6.46% to R1,616.52.

In the banking sector, Standard Bank led the gains among its peers, adding the most in two weeks, up 3.04% to R140.20.

At 5.03pm, the rand had strengthened 0.96% to R15.1469/$, 0.63% to R17.7810/€ and 0.14% to R20.7782/£. The euro was 0.36% firmer at $1.1737.