MARKET Wrap: JSE closes higher as weaker rand boosts banks and miners

The JSE closed firmer on Monday in thin trade as banks and property shares shrugged off a weaker rand‚ ending the day higher. Industrials also found support.

Trading volumes were low ahead of Workers’ Day‚ but did manage to surpass R13m by the close.

A lower platinum price‚ trading 1.15% weaker at $903.45 an ounce‚ dragged platinum stocks down‚ while the weaker rand supported some mining stocks. The local currency was last seen at R12.4581 to the dollar from R12.3535 previously.

Sentiment was risk-on‚ after talks between the South-and North-Korean leaders last week calmed markets‚ with North Korea’s Kim Jong-un pledging at the weekend to shut down Pyongyang’s nuclear test site‚ Dow Jones Newswires reported.

Local trade data supported market sentiment after surprising to the upside.

SA recorded a trade surplus of R9.47bn in March‚ but this was lower than the surplus of R11.81bn recorded in the same period a year ago.

A Trading Economics consensus forecast had expected R3.47bn.

The all share ended the day 1.39% higher at 58‚252.10 points and the top 40 gained 1.45%. Banks rose 2.21%‚ food and drug retailers 1.77%‚ property 1.72% and industrials 1.71%. The platinum index lost 0.96%.

Anglo American jumped 2.79% to R296.19.

British American Tobacco rose 1.64% to R687.21 and Naspers 2.15% to R3‚059.44.

Impala Platinum shed 2.87% to R22.34.

Barclays Africa leapt 3.97% to R182.99.

Resilient recovered another 2.96% to R67.75 and Nepi Rockcastle 1.17% to R137.59.

Steinhoff International fell 2.04% to R1.92.

The dollar has found support recently from expectations that the US Federal Reserve will tighten monetary policy at a faster pace than its current forward guidance.

This perception motivated a flight of capital from local bonds in the past week‚ which in turn led to higher yields. Foreigners were net sellers of local bonds to tune of just more than R3bn last week.

Whether the upward trend for the greenback resumes this week will depend on the Fed and US economic data‚ notably the release of US nonfarm payroll numbers for April.

Bonds turned marginally firmer in late trade‚ with the R186 bid at 8.185% from 8.21%.

The top 40 Alsi futures index gained 1.15% to 51‚802 points. The number of contracts traded was 17‚760 from Thursday’s 13‚350.

– BusinessLIVE

Source: TMG Digital.

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