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JSE manages to close firmer after weaker start

Jun 28 2018 19:31
Musa Makoni, GT247.com

The JSE advanced on Thursday despite a slow start which saw it briefly trade in the red.

Trading on the local bourse was very similar to the price action recorded on Wednesday, which saw the All-share Index reverse earlier losses to close the day firmer.

The JSE got off to a weaker start after a mixed trading session in Asian markets, which saw the Shanghai Composite Index drop 1.03% and the Hang Seng gain 0.5%.

In terms of economic data, South Africa’s Producer Price Index (PPI) year-on-year (y/y) for May hiked to 4.6% from a prior recording of 4.4%, while month-on-month (m/m) it slowed down to 0.7% from a prior level of 1.0%.

More focus was on US gross domestic product (GDP) data which was released Thursday afternoon. The US economy grew by 2.0% annualised quarter-on-quarter (q/q) which missed most analysts’ consensus estimate of 2.2%. This resulted in the US dollar retreating from its session highs after trading significantly firmer earlier on.

The rand

The rand weakened significantly to reach a session low of R13.99 against the greenback as the US dollar strengthened. However, at 17.00 the rand was trading at R13.86/$.

On the JSE, EOH Holdings [JSE:EOH] ended amongst the day’s top gainers yet again after adding 8.97% to close at R29.75 per share. British American Tobacco [JSE:BTI] advanced 4.98% to close at R691.03, while Grindrod [JSE:GND] was 3.35% firmer at R9.25.
 
Retailer, Massmart [JSE:MSM] added 2.23% to close at R110.77, and oil and gas producer, Sasol [JSE:SOL] managed to add 2.43% to close at R484.86. Fortress B [JSE:FFB] closed at R14.51 after adding 1.9%, while index heavyweight Naspers [JSE:NPN] firmed by 2.95% to close at R3 271.82 per share.

Trustco Group [JSE:TTO] shed 0.82% to end the day at R10.90 as the share traded under pressure due to a trading statement released on Wednesday. Royal Bafokeng Platinum [JSE:RBP] lost 5.65% to close at R19.89 per share whilst Impala Platinum closed at R19.04 after dropping 3.25%.

Construction firm, WBHO [JSE:WBO] eased to R149.20 after shedding 2.71%, and the new Old Mutual [JSE:OMU] listing lost 0.56% to close at R28.25 per share.
 
The JSE All-share Index eventually closed the day up 0.77% whilst the JSE Top-40 Index gained 0.91%. All the major indices managed to close in the green with the biggest gainer being the Industrials Index which gained 1.03%. The Resources and the Financials indices gained 0.32% and 0.84% respectively.

Brent crude tracked higher as supply concerns arose due to the disruption of supply through Libyan ports as well as the big draw recorded in US stockpiles data released on Wednesday. The commodity advanced to a session high of $78.29/barrel before being recorded at $78.11/barrel just after the JSE close.

At 17.00 gold was 0.15% weaker at $1 249.93/oz, Platinum was 1.31% weaker at $846.38/oz and Palladium was 1.59% softer at $937.18/oz.
Ethereum was 1.11% firmer at $436.68/coin and Bitcoin was 0.1% softer at $6 114.10/coin.

* The JSE market update is from GT247.com, an online broker and authorised financial services provider.

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equities  |  jse  |  markets
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