MARKET WRAP: JSE pushes higher, despite rand hitting a six-month low

The JSE gained on Thursday in thin-volumes, despite a rand slump, as markets waited for the start of the highly anticipated Group of Seven (G-7) summit in Canada.

The rand lost about 2% against the dollar and euro ahead of expected monetary policy tightening in both the eurozone and the US next week.

Local data on the day showed manufacturing production had risen 1.1% in April, which follows the first quarter’s dismal performance. This was at the lower end of consensus forecasts that ranged between 1% and 1.6%.

Local miners represented the best performing indices on the day, while banks reversed earlier gains to close lower as US markets opened, and the rand extended losses. Domestic sentiment this week has been battered somewhat by the economy’s poor showing in the first quarter, although global stocks have been buoyant.

US markets were higher on Thursday, lifted by data there, on jobless claims, that beat the market’s expectations.

The all share closed 0.53% higher at 58,391.60 points and the top 40 rose 0.58%. The platinum index gained 2.94%, resources 1.88%, gold 1.42%, and industrials 0.5%. Financials shed 0.65%, banks 0.64%, and food and drug retailers 0.27%.

Anglo American gained 1.5% to R327.18. Sasol jumped 2.5% to R492.

Sanlam closed 3.71% lower at R72.70 following the release of a disappointing trading update on Wednesday.

Steinhoff International jumped 11.4% to R1.27 after it announced that creditors had given its European subsidiaries a lifeline to the end of June.

Fortress B was down 0.3% to R16.61.

Telkom added 1.05% to R52.70 and Naspers 1.08% to R3,422.

Stenprop rose 2.35% to R19.60, after earlier reporting diluted earnings per share (EPS) grew 1.1% in the year to end-March.

Novus jumped 6.2% to R3.94 ahead of its results for the year to end-March, due out on Friday. The company said in April it expected EPS to have plunged 75% in the period.

Naspers firmed 1.08% to R3,422.

At 5.40pm, the Dow was up 0.54% to 25,282.53 points, while in Europe the FTSE 100, DAX 30 and CAC 40 were all little changed.

At the same time, gold was up 0.15% to $1,298.22 an ounce, while platinum had fallen 0.34% to $902.80 points. Brent crude had risen 1.4% to $76.80 a barrel.

The top 40 Alsi futures index gained 0.45% to 52,070 points. The number of contracts traded was 22,222 from Wednesday’s 19,545.