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JSE bucks global trend to close firmer

Musa Makoni

JSE bucks global trend to close firmer

The JSE bucked the trend in other global markets as it surged to close firmer on Monday.

With Chinese markets closed for a holiday, there was little sentiment that filtered through from Asian trading. European stocks traded moderately firmer, although there was disappointment stemming from German factory orders data, which contracted by 0.6% MoM in September. In the USA, the sentiment was rather pessimistic on the back of concerns over the extent of the Fed’s policy easing and the possibility of a deal at the next round of Sino-US trade talks.

Emerging market currencies struggled on the day, relinquishing some of the gains made towards the end of last week. The rand fell to a session low of R15.18/$ despite having traded as high as R15.02 just after the open. At 17.00 CAT, the rand was trading 0.7% weaker at R15.14/$.

Broad-based gains amongst the blue-chip counters saw the JSE extend its initial moderate gains on Monday. Rand hedge Bid Corporation [JSE:BID] climbed 3% to close at R343.50, British American Tobacco [JSE:BTI] gained 2.16% to close at R526.36, while Richemont [JSE:CFR] managed to add 1.34% to close at R105.69. Diversified mining giant Anglo American PLC [JSE:AGL] advanced 1.9% to close at R341.07, while sector peer BHP Group [JSE:BHP] gained 1.22% to close at R313.85. Clicks [JSE:CLS] caught most headlines on the day after it rallied 13.54% to close at R247.75, following the release of a full-year trading statement indicating they were expecting a significant increase in earnings. Sasol [JSE:SOL] surged 6.19% to end the day at R267.82, while Assore [JSE:ASR] climbed 6.01% to end the day at R262.90. Other significant gainers on the day included Naspers [JSE:NPN], which added 0.79% to close a R2272.67, and Prosus [JSE:PRX], which closed at R1086.00 after gaining 0.71%. 

Losses were relatively modest particularly for rand sensitives which retreated on the back of the softer rand. Retailer The Foschini Group [JSE:TFG] shed 0.59% as it closed at R164.53, while Massmart [JSE:MSM] lost 0.9% to close at R44.00. Bidvest [JSE:BVT] retreated 0.83% to end the day at R191.40, while telecoms provider Telkom [JSE:TKG] lost 0.8% to end the day at R72.95. Banker Nedbank [JSE:NED] weakened by 0.58% as it closed at R223.69, while Standard Bank [JSE:SBK] shed 0.6% to close at R173.50. 

The JSE All-Share index eventually closed 1.43% higher, while the blue-chip JSE Top-40 index gained 1.51%. The Resources index led gains amongst the major indices as it closed 2.73% higher. The Industrials and Financials indices gained 1.29% and 0.22%, respectively.

Brent crude rebounded in today’s session as it was eventually recorded trading 2.12% firmer at $59.61/barrel just after the JSE close.

At 17.00 CAT, Platinum was up 0.77% tat $886.75/Oz, Gold was 0.18% softer at $1502.09/Oz, and Palladium had shed 0.42% to trade at $1661.25/Oz.


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