GT247.com Trading Blog

JSE holds steady in cautious trade

Written by Musa Makoni | 25 May 2018

The JSE closed firmer on Friday after a cautious trading session where volatility was relatively subdued.

Retailers rebounded following consecutive sessions of significant pressure. The day’s top gainers included The Foschini Group [JSE:TFG], Mr Price [JSE:MRP] and Woolworths [JSE:WHL] which ended the day up 5.81%, 3.96% and 3.77% respectively. Pharmacists, Clicks [JSE:CLS] and Dis-Chem [JSE:DCP] found some reprieve as they managed to add 5.85% and 7.25% respectively. Bankers, Capitec Holdings [JSE:CPI] and Barclays Africa [JSE:BGA] gained 4.77% and 3.06% respectively.

Balwin Properties [JSE:BWN] closed at R5.43 per share after gaining 5.85%, whilst Tsogo Sun [JSE:TSH] added 4.1% to close at R22.28 per share. Sanlam [JSE:SLM] and Old Mutual [JSE:OML] gained 2.63% and 0.34% respectively, whilst Imperial Holdings [JSE:IPL] and Bidvest [JSE:BVT] managed to gain 1.95% and 2.8% respectively.

Miners, Sibanye-Stillwater [JSE:SGL] and Lonmin [JSE:LON] slid even further to end the day 5.13% and 4.69% weaker respectively. Listed property stocks, Fortress B [JSE:FFB] and Resilient [JSE:RES] shed 3.09% and 2.3% respectively, whilst Zeder Investments [JSE:ZED] and Distell [JSE:DST] lost 0.88% and 1.03% respectively.

On the blue-chip index, diversified miners Anglo American PLC [JSE:AGL] and BHP Billiton [JSE:BIL] lost 0.84% and 1.14% respectively, whilst oil and gas producer, Sasol [JSE:SOL], closed 1.89% weaker. Gold Fields [JSE:GFI] closed 1.09% weaker, whilst Sappi [JSE:SAP] ended the day 1.81 softer.

The JSE All-Share Index eventually closed 0.38% firmer, whilst the JSE Top-40 Index added 0.39%. Gains were recorded across most of the major indices however the Resources Index bucked this trend to end the day down 1.18%. The Industrials and Financials indices recorded gains of 0.6% and 1.73% respectively.

The Rand weakened from its overnights highs against the US dollar after greenback regained its upward momentum to reach its strongest level in 2018. The Rand was trading at R12.50/$ at 17.00 CAT, this was after it had reached a session low of R12.53/$.

Gold traded relatively flat despite the rebound in the US dollar. At 17.00 the precious metal was trading at $1303.14/Oz, whilst Platinum and Palladium were weaker on the day to trade at $900.53/Oz and $970.45/Oz respectively.

Brent Crude slumped by more than 2.5% after Saudi Arabia said that it expects OPEC and its partners to increase oil supplies later on in the year. The commodity reached a session low of $76.62/barrel and risks for more downside were prevalent when the JSE closed. Brent Crude was trading at $76.71/barrel just after the JSE close.

Trading in Bitcoin was relatively muted following the minor sell-off recorded in the previous session. Bitcoin was trading at $7467.40 per coin at 17.00 CAT. However Ethereum traded firmer on the day which saw the coin add 1.18% to trade at $594.56 per coin at 17.00 CAT.