JSE firms ahead of ECB rate decision

The JSE was higher on Thursday morning, in line with Asian and European markets, as focus remained on global monetary policy.

The European Central Bank (ECB) interest-rate decision at 1.45pm SA time is the major event of the day, and a dovish stance is expected.

Markets may be failing to factor in how dovish the ECB will be, amid negative bond yields in Europe and deteriorating economic data, said Vanguard Markets managing partner Stephen Innes in a note.

Local focus is on producer inflation data at 11.30am, with farm and factory-gate inflation expected to have moderated in June to an annualised 5.8% from May’s 6.4%.

Asian and European markets were higher on Thursday morning, with the JSE following suit, led by platinum miners.

At 9.55am the all share index was up 0.65% to 58,092.4 points and the top 40 index 0.66%. Platinums had added 2.1% and industrials 0.86%. Banks had fallen 0.75%.

Gold was flat at $1,425.20/oz and platinum was up 0.43% to $880.78. Brent crude was 0.78% higher at $63.55 a barrel.

Diversified miner Anglo American had added 2.28% to R386.50 and BHP 1.38% to R343.53.

Sasol fell 1.16% to R325.13, following its announcement that it had written down the value of assets by R18.1bn — the equivalent of about 9% of the group’s market value — as it struggles with cost overruns at its Lake Charles project in the US.

Vodacom fell 0.35% to R114.95 after reporting earlier that group revenue in the quarter to end-June rose 4.2% to R21.5bn, while service revenue grew 3.9% at R17.4bn.

UK-focused Capital & Counties fell 0.11% to R37.41. It said earlier its loss for the six months to end-June widened to £130.2m from the prior period’s £6.7m.

Harmony Gold gained 0.38% to R34.69. It earlier reported a 17% year-on year increase in gold production for the period to end-June.

[email protected]