JSE halts losing run on speculation over Chinese stimulus

THE JSE snapped a three-day losing streak yesterday as expectations of further monetary stimulus from China powered resource shares.

The JSE all-share index rose 0.37% to 54 639 points‚ shaking off last week’s losses‚ with the bluechip top 40 index rising 0.51%.

Strong gains in the likes of Kumba Iron Ore‚ BHP Billiton and Anglo American pushed the resources index up 2.9%, extending a trend that has been in play for the past month.

Gains in the sector yesterday came as investors bet the latest manufacturing report from China would prompt further action from its central bank‚ causing metals such as copper and iron ore to rise.

The platinum index also gained on the Chinese report‚ rising 1.29%.

Leading losses were banking and gold mining stocks. They gave back 0.96% and 0.95% respectively. Retail shares were also lower. Trading volumes were thin, be- cause of a holiday in the UK‚ which influences the South African share market because of stocks such as British American Tobacco‚ SAB Miller‚ Investec and Old Mutual.

Among individual shares of re- source on the JSE‚ Kumba Iron Ore rallied 4.27% to R167‚ BHP Billiton 3.58% to R295.09 and Anglo American 3.63% to R206.56.

Junior miners posted the biggest jumps among platinum counters. Jubilee Platinum surged 7.14% to 30c and Aquarius 3.57% to R1.74.

The Barclays Africa Group dipped 1.56% to R187.61‚ Standard Bank 1.37% to R172.21 and Old Mutual 1.28% to R42.41.

Clicks lost 3.05% to R88.51 and Mr Price 2.45% to R248.10‚ while Truworths bucked the negative tone‚ rising 2.51% to R88.90. – BDpro