Business Day

Metals and mining power the JSE

- Lindiwe Tsobo a barrel. tsobol@businessli­ve.co.za

The industrial metals and mining and resources sectors led the JSE higher on Friday, while global sentiment was lifted by hopes of improved relations between the US and China. The JSE gained 0.19% as industrial metals and mining rose 1.35%, resources 0.62% and industrial­s 0.27%. Precious metals and mining fell 1.26%, retailers 1.01%, with banks and financials both 0.72% lower. African Rainbow Minerals rose the most in a month, advancing 2.26%. Anglo American added 2.07% to R601.190.

The industrial metals and mining and resources sectors led the JSE higher on Friday, while global sentiment was lifted by hopes of improved relations between the US and China.

Shares in Steinhoff rose the most in three days after the group said the last vote for the settlement that aims to end most litigation against it and save it from bankruptcy garnered sufficient support.

Steinhoff, which almost collapsed in SA’s biggest accounting fraud, faced more than 100 legal claims worth more than R130bn from shareholde­rs. The company’s value plunged by about R200bn after the fraud was exposed in December 2017. The share price rose 5.92% to R3.22.

A phone call between US President

Joe Biden and his Chinese counterpar­t Xi Jinping helped lift the mood on internatio­nal markets.

While there seems to have been little progress on issues, the fact that they had their first call since February raised hopes of an improvemen­t in relations between the world’s two biggest economies.

“Sentiment has abruptly reversed on Friday as news that President Biden and President Xi had their first phone call in seven months. This is definitely music to the ears of investors,” said Oanda senior market analyst Craig Erlam.

The phone call spurred hopes of a thaw in US-China relations “which is ostensibly good for trade everywhere”, said Erlam.

“The two leaders talking in person is the first step to warming relations between the two superpower­s.”

The JSE gained 0.19% to 64,296 points and the top 40 advanced 0.27%. Industrial metals and mining rose 1.35%, resources 0.62% and industrial­s 0.27%. Precious metals and mining fell 1.26%, retailers 1.01%, with banks and financials both 0.72% lower.

African Rainbow Minerals rose the most in a month, advancing 2.26% to R239.68. Anglo American added 2.07% to R601.19, Glencore 1.71% to R65.94 and Kumba Iron Ore 1.34% to R625.40.

At 7.15pm, the rand had strengthen­ed 0.26% to R14.1744/$, 0.31% to R16.7478/€ and 0.1% to R19.6287/£. The euro was little changed at $1.1814.

Gold was down 0.14% to $1,791.70/oz and platinum lost 1.5% to $963.85.

Brent crude added 2% to $72.75

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