Cape Town –
Markets ended firmer on Tuesday as banks and retailers gained on the back of a
geopolitical risk saw investors buy gold, lifting the safe-haven asset to $1269/Oz
by the close of the market. This rally
in the precious metal resulted in a +3.31% rally in the Gold Index, led by
Harmony Gold [JSE:HAR], which climbed by 5.8%.
Gold was the
main beneficiary of heightened geopolitical risk led by US President Donald Trump’s
latest twitter threats toward North Korea, with the safe-haven asset reaching
its highest price for the year.
Top 40 closed 0.72% higher whilst the broader All Share Index firmed 0.74% led
by gold miners and a resurgence in financial stocks. The JSE Financial Index firmed 1.11%,
followed by the Industrial Index by 0.66%.
The Resource index closed flat as diversified miners traded lower on a
marginally firmer rand.
Data released by
Stats SA showed that South African manufacturing output dropped by 3.6%
year-on-year in February, worse than the 0.4% increase recorded in January and
the consensus market forecast of a marginal decline of 0.2%.
While the data
is weaker than expected, it did not have much influence on the market which had
largely priced in the low growth environment that accompanies a ratings
There was little
to no reaction in the rand, instead we saw it reaching highs of R13.77 against
the green back, and at the time of the JSE close it was trading at R13.86/$.
Brent Crude Oil backed off Monday’s gains
by -0.68% to $55.60/bbl after the G7 world leaders met with Middle Eastern
The G7 has made a unified plea for Russian
President Vladimir Putin to break ties with Syria's Bashar al-Assad, with the
meeting highlighting the growing military threat between the US and Syria that
could escalate should Russia defend its ally.
*This report is from the Trading Desk at EasyEquities, Fin24's latest content partner on equities and market moves.Read Fin24's top stories trending on Twitter:
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