JSE gains as investors reassess risk of Brexit

Johannesburg - South African markets gained on Friday as higher gold prices lifted gold miners and the rand benefited as investors reassessed the probability of Britain voting to leave the European Union in a referendum.

South African markets have been hit by concerns that if Britons opt to leave the EU in a June 23 vote, it would send shockwaves through global financial markets.

Britain temporarily suspended referendum campaigning on Friday following the murder of a British lawmaker, which has shocked the country.

Traders adjusted some positions as the implied probability of a vote to remain in the EU also rose to 67%, from 65% on Thursday, according to Betfair odds, although recent polls have given the campaign to leave the EU a slight edge.

By 15:10 GMT, the rand was at 15.1900 to the dollar, gaining 1% from its New York close on Thursday.

"It seems the market is reconsidering the risk priced in for a potential Brexit next week and the main catalyst for this was the tragic killing of one of the campaigners of the 'stay' campaign," ETM Analytics market analyst Jana van Deventer said.

"But there is still real risk that the UK ultimately votes to exit the European Union and that would send ripples across financial markets."

South African government bonds also firmed, pulling the yield for 2026 debt 6 basis points lower to 9.065%.

On the equities market, the All-Share index ended up 0.22% at 52 141 points, while the benchmark Top-40 index closed 0.19% up at 46 137 points.

Among the gainers, Gold Fields closed 1.48% firmer at R63.12 as gold rose, supported by a cautious note from the US Federal Reserve on interest rates.

Gold is highly sensitive to rising interest rates, which lift the opportunity cost of holding the precious metal.

Trade was below average, with more than 219 million shares changing hands, well above last year's daily average of about 296 million shares.