JSE advances as global stocks hold steady

The JSE advanced on Monday as it was spurred by gains recorded in other global markets and particularly a surge in the main Chinese benchmark.

The Shanghai Composite Index rallied 2.25% while the Hang Seng managed to post gains of 0.52%. The Nikkei came under pressure as it closed 0.69% weaker. The main European equity benchmarks traded mildly firmer on the day while US equity markets will be closed to commemorate president’s day.

Locally, the rand plummeted in the afternoon session after Moody’s lowered South Africa’s GDP forecast to 0.7% from 1%. The rand fell as low as R15.01/$ before it was recorded trading 0.74% weaker at R15.00/$ at 17.00 CAT.

Miners led most of the day’s gains led by Anglo American Platinum [JSE:AMS] which surged following the release of a robust set of full-year results. The share closed 5.34% higher at R1328.93. Other platinum miners also advanced on the day with gains being recorded for Northam Platinum [JSE:NHM] which added 4.57% to close at R140.00, as well as Impala Platinum [JSE:IMP] which rose 1.84% to close at R167.57.

Sibanye Gold [JSE:SGL] rallied 6.37% to close at R44.78, while Kumba Iron Ore [JSE:KIO] gained 5.15% to close at R369.32. African Rainbow Minerals [JSE:ARI] was lifted by the release of a half-year trading statement which saw the share close 3.94% to close at R168.39.

Gains were also recorded for Truworths [JSE:TRU] which advanced 1.44% to close at R43.76, as well as Telkom [JSE:TKG] which closed at R32.16 after gaining 1.84%.

Discovery Ltd [JSE:DSY] flagged in its trading statement that it is expecting lower earnings due to VitalityLife and investment in new initiatives. The share subsequently fell 7.92% to close at R110.24. Bid Corporation [JSE:BID] also weakened following the release of its trading statement which saw the share drop 3.53% to close at R316.85. Listed property stocks traded mostly softer as declines were recorded for Intu Properties [JSE:ITU] which fell 4.26% to close at R2.25.

Hospitality Property Fund B [JSE:HPB] which dropped 4.37% to close at R6.35, as well as Resilient REIT [JSE:RES] which lost 1.37% to close at R62.68.

Losses were also recorded for Rhodes Food [JSE:RFG] which lost 4.48% to close at R16.00, as well as Sasol [JSE:SOL] which weakened by 3.15% to close at R230.50.

The JSE All-Share index eventually closed 0.56% firmer while the JSE Top-40 index added 0.59%.

The Resources index was the biggest gainer as it surged 1.02%, while the Industrials and Financials indices gained 0.38% and 0.21% respectively.Brent crude traded mostly flat on the day and it was recorded trading 0.03% weaker at $57.33/barrel just after the JSE close.

At 17.00 CAT, Palladium had surged 2.42% to trade at $2490.56/Oz, Platinum was up 0.61% at $969.24/Oz, while Gold was down 0.61% at $969.99/Oz. 

*Musa Makoni is a trading specialist at Purple Group

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