JSE firms on stronger rand and improved sentiment

GAINS by banks offset losses by rand hedges and miners yesterday‚ with local and international politics firmly in the spotlight.

Reports that President Jacob Zuma was on his way out strengthened the rand at the weekend‚ bringing it within 1c of R12/$ yesterday morning.

The currency gave up some of its gains after the ANC denied any formal decision to remove Zuma.

Analysts‚ however‚ said signs that ANC president Cyril Ramaphosa was consolidating his position within the party were positive.

A smooth exit for Zuma increased prospects of the Reserve Bank cutting interest rates this year‚ and decreased the likelihood of further credit-ratings downgrades. Barclay’s Research analysts said yesterday they had changed their outlook for agency Moody’s March ratings decision to no downgrade. There was now no meaningful catalyst for material near-term rand depreciation.

The all-share added 0.27% to 61 078.3 points and the Top 40 rose 0.2%.

Banks jumped 2.48%‚ financials 0.98% and general retailers 0.97%.

Rand hedge Richemont fell 1.93% to R111.85 and Anheuser-Busch InBev 1.59% to R1 396.60.

Gold Fields added 3.15% to R50.50 and Sibanye-Stillwater 2.69% to R15.20.

Standard Bank gained 2.78% to R199.91‚ FirstRand 3.15% to R66.50 and Barclays Africa 2.23% to R183.

Clicks gained 0.77% to R174.99‚ after earlier reporting sales had grown 11.3% in the 20 weeks to January 14‚ a slight decrease in the rate of growth in the previous comparative period.