JSE holds above 60,000 points at the opening as miners rebound

The JSE all share opened firmer on Wednesday as miners lifted the overall market in cautious trade, following a flat performance on the Dow on Tuesday in a low-volume, lacklustre session.

The all share crossed 60,000 points for the first time in six months on Tuesday, but analysts said the positive sentiment towards emerging markets as a whole, which benefits the all share, could quickly turn around.

The market is focused on movements in the dollar, which may be due for a rebound after earlier weakening above $1.1740 to the euro. On Wednesday morning the greenback was at $1.1677, placing some pressure on the rand, which was trading at R14.32 to the dollar from R14.23.

The stronger dollar, together with softer oil prices, had little effect on mining stocks on the JSE as the market followed the softer rand.

The Dow closed 0.06% higher on Tuesday. The S&P 500 and the Nasdaq finished at records for a third consecutive session after a measure of consumer confidence hit a nearly 18-year high, underscoring a continued expansion of the US economy, Dow Jones Newswires reported.

Asian markets were flat to weaker in early trade amid warnings from the Chinese authorities that the Chinese economy might experience further challenges that would affect growth.

The Chinese finance department called for “further aggressive measures” to boost domestic demand and fuel a structural shift in the economy, the newswire reported.

Tencent was 1.5% weaker in Hong Kong trade, with Naspers slightly higher soon after the JSE’s opening.

At 9.59am the all share was 0.21% up at 60,168 points and the top 40 added 0.29%. Resources rose 1.16%, the gold index 0.58% and industrials 0.17%. Banks lost 0.99%, food and drug retailers 0.59% and financials 0.44%.

Anglo American rose 1.18% to R300.49.

British American Tobacco added 1.7% to R719.66.

FirstRand dropped 1.48% to R69.73 and Standard Bank 1.15% to R192.50.

Growthpoint was flat at R26.17 after reporting dividend growth of 6.5% for the year to end-June.

Naspers added 0.3% to R3,570.54.

Curro Holdings dropped 0.62% to R32.05 amid reports the group was overvalued at present levels compared to its reported earnings growth.