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Johannesburg - The JSE closed on the front foot on Thursday despite a weaker opening‚ with risk appetite in global markets pushing demand for equities higher.
“We’ve seen a very solid bounce in global markets since monday’s lows with risk-on coming back on the table as investors get back into equities‚” said a local trader.
At 18:00‚ the All Share [JSE:J203] index was up 0.35% to 39.083.31 points with an uptick in the spot price of platinum supporting local platinum miners‚ with the index adding 1.58%. The spot price of platinum had gained 2% to $1‚326 per ounce by 5pm local time.
At the same time US stocks were on track for their third day of gains with the Dow Jones up 0.98%; European shares were also higher with London’s FTSE 100 up 1.65%.
Market participants cheered Africa’s biggest pharmaceutical group‚ Aspen’s (APN’s) R10bn deal with global healthcare company MSD to acquire its manufacturing businesses located in the Netherlands. Aspen outperformed the entire market‚ with its share price surging 6.1% to R210.14‚ valuing the company at R95.788bn.
In other company news‚ mobile operator (MTN) missed the chance to become the first foreign telecommunications company to operate a cell phone network in Myanmar but the company’s shares nonetheless lifted 3.04% to R178.77.
“The market liked the fact that MTN did not win the license as there were concerns that the company would end up overpaying for it‚” the trader said.
Among platinum stocks Anglo Platinum (AMS) added 2.39% to R280.55 and Impala (IMP) was up 2.39% to R89.22.
A disappointing trading update saw Ellies (ELI) tumble 6.09% to R7.71 as investors had anticipated more than the projected 30% to 40% rise in headline earnings for the year ended April‚ based on the company’s previous performances with a weaker trading print seen to imply challenges in the second quarter of this year. Other retailers were also mostly weaker with JD Group (JDG) losing 2.71% to R30.57 and The Foschini Group (TFG) falling 1.57% to R95.05.
Expectations of a muted inflation outlook in the second quarter from the Bureau for Economic Research’s (BER’s) latest survey gave support to banking counters with African Bank (ABL) climbing 4.15% to R16.30 and Nedbank (NED) adding 1.16% to R175‚ but shares in ABSA (ASA) declined 1.85% to R144.28.
In a separate report‚ PwC’s latest banking survey showed local banks were optimistic about their future profitability‚ forecasting an average return on equity (ROE) of 15% in the next 12 months. Most of the banks surveyed ranked regulation as the most pressing issue facing them as Basel 3 provisions are implemented.
Among other stocks on the JSE‚ Anglo American (AGL) lost 1.02% to close at R193.50 while Sasol (SOL) rose 1.59% to R419.34.
Kumba Iron Ore (KIO) was up 2.19% to R448.85 and Exxaro (EXX) added 1.10% to R141.57.
“We’ve seen a very solid bounce in global markets since monday’s lows with risk-on coming back on the table as investors get back into equities‚” said a local trader.
At 18:00‚ the All Share [JSE:J203] index was up 0.35% to 39.083.31 points with an uptick in the spot price of platinum supporting local platinum miners‚ with the index adding 1.58%. The spot price of platinum had gained 2% to $1‚326 per ounce by 5pm local time.
At the same time US stocks were on track for their third day of gains with the Dow Jones up 0.98%; European shares were also higher with London’s FTSE 100 up 1.65%.
Market participants cheered Africa’s biggest pharmaceutical group‚ Aspen’s (APN’s) R10bn deal with global healthcare company MSD to acquire its manufacturing businesses located in the Netherlands. Aspen outperformed the entire market‚ with its share price surging 6.1% to R210.14‚ valuing the company at R95.788bn.
In other company news‚ mobile operator (MTN) missed the chance to become the first foreign telecommunications company to operate a cell phone network in Myanmar but the company’s shares nonetheless lifted 3.04% to R178.77.
“The market liked the fact that MTN did not win the license as there were concerns that the company would end up overpaying for it‚” the trader said.
Among platinum stocks Anglo Platinum (AMS) added 2.39% to R280.55 and Impala (IMP) was up 2.39% to R89.22.
A disappointing trading update saw Ellies (ELI) tumble 6.09% to R7.71 as investors had anticipated more than the projected 30% to 40% rise in headline earnings for the year ended April‚ based on the company’s previous performances with a weaker trading print seen to imply challenges in the second quarter of this year. Other retailers were also mostly weaker with JD Group (JDG) losing 2.71% to R30.57 and The Foschini Group (TFG) falling 1.57% to R95.05.
Expectations of a muted inflation outlook in the second quarter from the Bureau for Economic Research’s (BER’s) latest survey gave support to banking counters with African Bank (ABL) climbing 4.15% to R16.30 and Nedbank (NED) adding 1.16% to R175‚ but shares in ABSA (ASA) declined 1.85% to R144.28.
In a separate report‚ PwC’s latest banking survey showed local banks were optimistic about their future profitability‚ forecasting an average return on equity (ROE) of 15% in the next 12 months. Most of the banks surveyed ranked regulation as the most pressing issue facing them as Basel 3 provisions are implemented.
Among other stocks on the JSE‚ Anglo American (AGL) lost 1.02% to close at R193.50 while Sasol (SOL) rose 1.59% to R419.34.
Kumba Iron Ore (KIO) was up 2.19% to R448.85 and Exxaro (EXX) added 1.10% to R141.57.
