Local stocks surged despite GDP data from Statistics SA indicating that South Africa had entered a technical recession following a consecutive quarter of GDP contraction. GDP MoM for the 4th quarter was recorded at -1.4% as it worsened from a prior recording of -0.8%. GDP YoY was recorded at -0.5% from a prior recording of 0.1%.
The rand retreated in today’s session as it fell to a session low of R15.62/$ before it gained some momentum towards the JSE close. At 17.00 CAT, it was trading 0.74% softer at R15.48/$.
The US Fed sent shockwaves across global markets at 17.00 CAT after it announced a 50 basis points cut to its benchmark rates. In a statement issued by the Fed shortly thereafter, the Fed stated that the coronavirus poses evolving risks to economic activity despite the fundamentals of the US economy being currently strong. A volatile trading session is on the cards for US benchmark indices as investors react to the rate cut.
On the JSE, Steinhoff International [JSE;SNH] closed as one of the day’s biggest gainers after it surged 22.86% to close at R1.72. Listed property stocks advanced on the day with a rally being recorded for Accelerate Property Fund [JSE:APF] which gained 13.04% to close at R1.30, Fortress REIT [JSE:FFB] which climbed 8.25% to close at R5.25, was well as Sirius Real Estate [JSE:SRE] which rose 5.77% to close at R16.50. Gold miner, AngloGold Ashanti [JSE:ANG] added 7.45% to close at R304.48, while Gold Fields [JSE:GFI] advanced 4.39% to close at R99.70. Significant gains were also recorded for Discovery Ltd [JSE:DSY] which gained 3.56% to close at R101.68, while BHP Group [JSE:BHP] closed at R292.67 after rising 3.11%.
Significant losses were recorded for a handful of stocks in today’s session. SA Corporate Real Estate [JSE:SAC] fell 5.77% to close at R1.96, Intu Properties [JSE:ITU] retreated 1.41% to close at R2.10. Royal Bafokeng Platinum [JSE:RBP] weakened by 4.38% to close at R47.81, while KAP Industrial Holdings [JSE:KAP] dropped 3.4% to end the day at R2.84. Losses were also recorded for Blue Label Telecoms [JSE:BLU] which lost 3.36% to close at R2.30, Nedbank [JSE:NED] which retreated 2.28% to close at R171.01, as well as Sappi [JSE:SAP] which closed at R30.52 after shedding 0.75%.
The JSE All-Share index closed 2.16% higher while the JSE Top-40 index gained 2.19%. The Resources index surged 3.78%, while the Industrials and Financials indices added 1.49% each.
Brent crude was up 2.87% at $53.33/barrel just after the JSE close.
At 17.00 CAT, Platinum was up 0.84% at $867.55/Oz, Gold was 1.58% higher at $1615.40/Oz, and Palladium was down 1.54% at $2483.78/Oz.
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