JSE firms as banks and financials surge amid stronger rand
THE JSE closed stronger yesterday with all the main indices ending in the black‚ led by banks which found support from a stronger rand.
This came in the wake of less than expected monetary stimulus from the Bank of Japan last week and a disappointing US gross domestic product print on Friday‚ causing the dollar to weaken.
The rand touched a firmest intraday level of R13.77 to the dollar from R13.89/$ on Friday.
The all-share index closed 0.62% higher at 53 126.80 points and the Top 40 index gained 0.51%.
Banking shares leapt 3.61% higher‚ followed by platinum shares‚ up 2.31% amid a firmer spot metal price. Financials lifted 1.7% and resources 1.04%. Banking shares were quite strong on the day‚ led by a big rise in Nedbank shares after the company released interim results.
On the international front‚ losses in energy shares helped drag US stocks lower as the price of oil fell back towards $40 a barrel.
Meanwhile, Europe’s leading markets were weaker in trade as investors await the Bank of England announcement on Thursday‚ when it is expected to adopt monetary stimulus to counter the effects of Brexit.
Among individual shares‚ Anglo American gained 1.76% to R155.70 and BHP Billiton 1.24% to R175.64.
Kumba Iron Ore surged 7.27% to R145.36. Among banks, Nedbank leapt 6.68% to R212.30‚ Standard Bank was up 3.98% to R144.07 and FirstRand gained 3.23% to R50.16.
Sanlam jumped 5.12% to R68.75 and Discovery 1.55% to R126.93.
Impala Platinum was 3.57% higher at R63.18.
Group Five closed 2.06% higher at R23.25 – TMG Digital