JSE joins global stock rally on USA-Mexico NAFTA deal

The JSE rallied along with other global markets to close firmer on Monday as optimism crept back amongst investors.

Positive developments around the USA-Mexico NAFTA trade deal inspired US equity benchmarks, the S&P500 and Nasdaq, to rally to fresh all-time highs just after the opening of trading in New York on Tuesday. Markets also reacted positively to the news of Chinese central bank intervention in the yuan which plugged a four-week slide in the currency.

In Johannesburg, the JSE traded in positive territory with financials leading the day’s gainers. Investec Limited [JSE:INL] and Investec PLC [JSE:INP] climbed 4.47% and 4.12%, to close at R95.80 and R96.25 per share respectively.

Standard Bank [JSE:SBK] rose to R193.25 after gaining 3.51% while ABSA Group [JSE:ABG] closed 3.53% firmer at R166.43 per share. Life Healthcare [JSE:LHC] managed to add 3.76% to close at R26.50 per share.

On the broader index, Super Group [JSE:SPG] jumped 6.94% to close at R36.36 mainly on the back of the release of their full-year results which indicated an increase in headline earnings of 19%. Platinum miner, Impala Platinum [JSE:IMP] jumped 4.73% to close at R17.93, and its sector peer, Lonmin [JSE:LON] rose by 4.52% to end the day at R7.40 per share as platinum metal prices traded firmer.

Royal Bafokeng Platinum [JSE:RBP] bucked the trend in platinum miners to end the day down 1.78% at R22.65 per share. EOH Holdings [JSE:EOH] traded under pressure eventually closing 4.8% weaker at R42.80 per share. Curro Holdings [JSE:COH] pulled back to close at R32.32 after dropping 2.59%, while Stadio Holdings lost 2.2% to close at R4.00 per share.

Losses were limited on the blue-chip index where only four stocks closed weaker. NEPI Rockcastle [JSE:NRP] shed 1.86% to close at R131.80, and retailer, Mr Price [JSE:MRP] shed 0.59% to close at R239.75 per share. British American Tobacco [JSE:BTI] closed 0.17% weaker at R720.00 per share, and Mediclinic [JSE:MEI] dropped 0.21% to close at R90.80 per share.

The JSE All-Share index maintained its momentum eventually closing the day up 1.46%, whilst the JSE Top-40 index rose 1.54%. All the major indices closed in the green with the biggest gainers being the Financials and Resources indices which jumped 2.3% and 2.04% respectively. The Industrials index managed to pick up 0.98%.

The Rand did open weaker on Monday which saw it slip to a session low of R14.35 against the greenback. The local currency pulled back after the Mexican peso got a lift due to the sentiment around the NAFTA deal. At 17.00 CAT, the rand was trading at R14.11/$.

Gold was trading mostly flat, but it spiked higher to reach its session highs towards the JSE close as the US dollar retreated. At 17.00 CAT the precious metal was trading 0.51% firmer at $1211.48/Oz. Platinum was up 1.6% to trade at $803.87/Oz, while Palladium was trading 1.21% firmer at $947.97/Oz.

Brent crude was trading weaker before it rebounded due to the news around the NAFTA deal. The commodity rallied to trade 0.17% firmer at $75.95/barrel just after the JSE close.

At 17:00 CAT, Bitcoin was trading 0.41% higher at $6732.50/coin, and Ethereum was up 0.49% to trade at $276.49/coin.

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