SA markets start March on high note

THE JSE rallied to its best level in about three months this week, taking its lead from higher international markets.

The All Share index logged a sturdy 5.61% rise to 52 200.71 points, while the rand recovered from the steep losses of the previous week.

The local currency slipped to lows of R16.16/$ before bouncing back to R15.42/$ this week following reassuring comments from the Presidency that Pravin Gordhan was safe in his position as finance minister.

The spat between Gordhan and South African Revenue Service head Tom Moyane briefly shook the markets.

“With the lack of any imme- diate crisis to focus the markets’ attention, coupled with calmer oil prices, risk appetite has ticked up, and markets have gained ground steadily during the week,” said Devin Shutte, CEO of MyWealth Investments.

Industrial and financial stocks supported the rally, which was dominated by resources this week. The Resource 10 index gained 13% to reach its highest level since early November.

But it was platinum companies that shot the lights out this week, with Anglo American Platinum jumping 20%, Impala Platinum soaring 46% and Lonmin surging 72% amid the steady improvement in the platinum price to $966/oz.

“On the earnings front, we saw many South African companies release their full-year results. Generally, the outlook shared by many was that the South African operating environment is an increasingly tough place, as we struggle for growth,” said Shutte.

“As a result, I would caution against complacency, as investor confidence is still fragile and it will not take much to dent it again.”

Global equity markets were similarly roundly positive in the first week of the new month, with Japan’s Nikkei 225 regaining 6%.

The closely watched US nonfarm payrolls data beat market expectations, adding 242 000 jobs in February.