JSE edges higher despite pressure on global markets

The JSE was a little higher on Monday morning, with the most eye-catching activity on global markets a continued fall in oil prices.

The price of brent crude fell 7% on Friday and almost 14% in May, under pressure from fears of a global economic downturn, and high levels of US production.

Asian and European markets were weaker on Monday morning, with the US-China trade war remaining the dominant issue.

Gold miners benefited from a higher precious metal price, while banks and retailers were benefiting from a stable rand.

At 10am the all share was up 0.36% to 55,849.6 points and the top 40 0.46%. Gold miners had added 2.03% and banks 0.78%. The resources index was down 0.42%.

Gold was up 0.76% to $1,315.13/oz while platinum had added 0.71% to $799.87. Brent crude was 1.23% lower at $60.92 a barrel.

The rand was flat at R14.5879/$.

Economic data will be closely watched this week, with US manufacturing and local purchasing managers figures due on Monday. Tuesday sees the release of SA’s first-quarter GDP numbers, while US nonfarm payrolls numbers cap off the week on Friday

Sasol fell 0.95% to R363.12, extending May’s 22.74% loss. It’s share price was roiled after May by the announcement of more cost overruns at its Lake Charles chemicals project in the US, but it said on Monday the second of seven production units at that plant has come online.

Rand hedge British American Tobacco was 1.46% lower at R499.60.

Lonmin was up 2.18% to R14.04.

Delta Property Fund had added 1.01% to R2. It said earlier net property income decreased by 9.7% in the year to end-Feburary, with the company reducing its full-year distribution to 55.39c from the prior period’s 97.24c. The company said it retained some of its distributable earnings in order to finance working capital costs and new capital expenditure.

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Source: businesslive.co.za