JSE closes higher as Steinhoff and Sanlam spread domestic market cheer

THE JSE closed firmer yesterday, with broad-based gains on buoyant global markets.

The sentiment was supported by strong quarterly results from Steinhoff and Sanlam.

The domestic market was boosted by firmer global markets‚ despite lower oil prices‚ with Asia setting the scene early in the day.

International furniture retailer Steinhoff‚ in the Christo Wiese stable‚ and financial group Sanlam surprised the market on the upside with their results‚ sending financial and industrials higher.

Resources gained on firmer metal prices‚ with gold having risen 0.64% to $1 177.80 an ounce by 7.30pm. Platinum was up 0.16% at $943.50. Brent crude‚ however‚ had softened 1.15% to $53.33 a barrel.

Banks and retailers gained on rand strength.

The JSE all-share index closed 1.1% higher at 49 476.1 points and the blue-chip Top 40, 1.19%.

General retailers were up 2.01% and industrials rose 1%. Resources firmed 1.67%‚ platinums 1.55% and the gold index 0.42%. The listed property index closed 0.98% higher.

Questions have been raised on whether the subdued performance of the all-share so far this year points to softer gains over the next decade, compared with growth averaging 10% a year over the past decade.

Citadel advisory partner Danie Venter expects only a muted increase in the domestic market‚ barring outperformers.

Sanlam was 2.24% higher at R60.77 and Steinhoff rocketed 9.5% to R69.75.

Sasol rose 0.77%.