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JSE erases earlier losses to close firmer

Written by Musa Makoni | 22 May 2018

The JSE closed firmer on Tuesday despite briefly trading in the red after the index opened weaker.

The majority of the blue-chip index’s constituents managed to gain momentum as today’s trading session progressed, which saw bankers and retailers in particular benefitting from the firmer Rand. The Rand strengthened against the greenback to reach a session high of R12.49/$ as the US dollar eased from its overnight highs. At 17.00 CAT the local currency had retraced to trade at R12.59/$.

Long4Life [JSE:L4L] jumped 6.67% to close at R5.92 per share as it ended as the day’s biggest gainer. Telecommunications providers, Vodacom [JSE:VOD] and Bluetel Communications [JSE:BLU] ended the day up 4.41% and 5.65% respectively. Pharmaceutical giant, Aspen [JSE:APN] added 4.62% to close at R260.34 per share, whilst PSG Group [JSE:PSG] gained 3.52%.

Retailers, Pick n Pay [JSE:PIK], Mr Price [JSE:MRP] and The Foschini Group [JSE:TFG] gained 3.73%, 2.72% and 2.22% respectively. Bankers, Standard Bank [JSE:SBK] and First Rand [JSE:FSR] managed to add 2.27% and 2.14% respectively. Discovery [JSE:DSY] and Mediclinic [JSE:MEI] managed to firm by 2.16% and 2.45% respectively.

Clientele [JSE:CLI] came under pressure as it lost 12.05% to close at R19.35 per share. Listed property stocks, Balwin Properties [JSE:BWN] and Delta Properties [JSE:DLT] lost 3.89% and 2.34% respectively. Dis-Chem [JSE:DCP] shed 3.26% to close at R28.45 per share, whilst Clicks [JSE:CLS] lost 1.19%.

Reinet [JSE:RNI] and Richemont [JSE:CFR] lost 1.85% and 1.52% respectively, whilst Gold miners, Gold Fields [JSE:GFI] and AngloGold Ashanti [JSE:ANG] closed the day 1.18% and 1.28% softer. Anglo American PLC [JSE:AGL] and BHP Billiton [JSE:BIL] pulled back by 0.43% and 1.18% respectively.

The JSE All-Share Index rebounded from its sluggish start to end the day up 0.52%, whilst the JSE Top-40 Index firmed by 0.56%. The Resources Index came traded softer to end the day 0.43% weaker, however the Industrials and Financials Indices added 0.60% and 1.49% respectively.

Gold paired its losses after an earlier slump, and at 17.00 CAT it was trading flat at $1292.56/Oz. Palladium briefly broke out above $1000/Oz to reach a session high of $1006.79/Oz, however at 17.00 CAT it had retraced to trade at $996.52/Oz. Platinum was trading firmer on the day and when the JSE closed it was up 0.95% at $908.56/Oz.

Brent Crude rose on the back of supply concerns as a result of the imposition of sanctions on that country by the USA. The USA passed a decision to ban the purchase of Venezuelan government debt which resulted in Brent Crude jumping by more than 1.4% to peak at $80.40/barrel. It was trading at $80.31/barrel just after the JSE close.

Bitcoin and Ethereum marginally softer today in comparison to their overnight close. At 17.00 CAT, Bitcoin was trading at $8231.90 per coin, whilst Ethereum was trading at $680.00 per coin.