JSE opens higher led by gold miners

The JSE opened firmer on Monday morning with gold miners leading gains. 

The local bourse ended last week lower, tracking global markets after US nonfarm payrolls — which measure changes in the US labour market over each month — exceeded market expectations on Friday. The US added 224,000 nonfarm jobs in June, dampening expectations that the US Federal Reserve will sharply cut interest rates. Investors will be closely watching Fed chair Jerome Powell’s semi-annual testimony to the US congress on Wednesday. 

“Governor Powell’s testimony should remind investors that the US may need a gentle monetary support to prevent the US — China trade war from interfering with the US economic growth, but a significant policy easing is probably not necessary just yet,” London Capital Group senior market analyst Ipek Ozkardeskaya said. 

The Shanghai Composite had fallen 2.58% and Hong Kong’s Hang Seng 1.64%, while Japan’s Nikkei 225 was up 0.2%. 

At 10.15 am, the JSE all share had gained 0.21% to 57,713.50 points and the top 40 has risen 0.12%. Gold miners climbed 3.56% and the platinum index was up 2.13%. 

Among gold miners, Sibanye had gained 3.97% to R16.22, Harmony 3.95% to R32.08, Gold Fields 3.5% to R74.45 and AngloGold Ashanti 3.49% to R256.06. 

Steinhoff earlier fell 1.55% to R1.27 after the company said on Monday that its CFO, Philip Dieperink, would step down at the end of August. 

Impala Platinum had gained 3% to R74.57 after it said on Monday that refined platinum production for the year ended June was expected to increas 4% to 1.5-million ounces.

No major company results or local economic data are expected on Monday today. Statistics SA is set to release manufacturing and mining production figures for May later in the week.

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