JSE higher in lacklustre trade as oil price rises

THE JSE closed marginally higher in low-volume trade yesterday with UK markets closed‚ and as a weaker rand failed to lift the market heavyweights.

Focus was on the firmer oil price‚ with Brent crude crossing $76 a barrel during the day‚ its highest level since the end of 2014.

Dow Jones Newswires said a deadline to renew waivers of US sanctions on Iran loomed amid concern that President Donald Trump would not renew the waivers‚ which expire on Saturday. This has pushed crude prices higher even as the dollar rebounded.

Sentiment towards emerging markets remained fragile‚ with Turkey and Argentina suffering substantial currency losses earlier.

Confidence in US markets remains high on upbeat US earnings and growth prospects.

“The weaker rand is helping the JSE‚ where the largest companies generate most of their revenues abroad‚” Old Mutual Multi-Managers investment strategist Dave Mohr said. British American Tobacco‚ Richemont and Naspers all closed flat to marginally higher in the stronger dollar environment‚ while Sasol was the exception.

Volumes at the close were at a low R8-billion‚ compared to the daily average of R20-billion.

The JSE all-share closed 0.4% higher at 57 880.7 points and the Top 40 gained 0.54%. Banks rose 0.74%‚ food and drug retailers 0.59%‚ resources 0.56%‚ financials 0.53% and property 0.44%. The platinum index fell 2.43% and gold 2.36%. Sasol rose 1.73% to R453.

Sibanye-Stillwater dropped 7.69% to R9.97. Seven workers earlier lost their lives at the group’s Masakhane mine.

Anglo American Platinum lost 1.43% to R348.95.

FirstRand rose 1.11% to R65.72 and Nedbank 1.94% to R297.15. Discovery rose 1.56% to R173.35. Dis-Chem lost a further 0.89% to R30.13 after tumbling 13.9% on Friday‚ as the high-flying group missed earnings expectations.