JSE opens week stronger as banks shine and gold shares fall

THE JSE closed 0.74% higher yesterday as stronger global markets boosted banking and financial stocks‚ while gold shares were the biggest loser.

Optimism over a possible resolution to Greece’s debt crisis had boosted appetite for risky assets.

At 5pm, the JSE all-share was 0.74% higher at 52 189.30 points and the blue-chip top 40 had gained 0.91%. The banking index rose 2.65% and financials 1.58%. Platinum shares rose 0.68% and indus- trials 0.66%. The gold index shed 5.03% and resources lost 0.23%.

Stanlib retail investing director Paul Hansen said the JSE had been unusually negative of late for a bull market‚ declining in 18 of the last 24 trading days. “Admittedly‚ it is an old bull market‚” he said.

Some shares‚ however‚ had a hefty correction. Despite these corrections, financials were still 6.3% up so far this year and industrials had gained 6.6%. The mining index was 2.5% higher in the year to date.

Standard Bank closed 3.09% higher at R157‚ FirstRand was up 2.41% to R52.30‚ Barclays Africa firmed 2.36% to R177.94 and Nedbank added 2.11% to R236.85. Among financials, Sanlam was 2.29% stronger at R67.94 and Discovery 1.75% at R122.20. Liberty firmed 1.40%.

Retailers were mixed‚ with Massmart adding 0.42% to R151.64‚ but Spar lost 1.55% to R179.97. Market heavyweight Naspers firmed 1.43% to R1 896.82.

AngloGold Ashanti led the losses among gold stocks‚ slumping 7.03% to R109.50.

Construction stocks were major victims yesterday. Basil Read Holdings retreated 7.61% to R4.37 and Aveng 5.55% to R6.30. – BDLive