JSE opens higher on mixed Dow performance in low-volume trade

The JSE opened firmer on Tuesday, recording broad-based gains, but volumes were low on higher Asian markets, taking their cue from a mixed performance on the Dow.

Volumes traded amounted to about R1bn 30 minutes after the opening, with platinum stocks recovering strongly.

US stocks showed a lack of direction, with the Dow closing flat, partly because home sales data left the market questioning if the US economy would continue its good form. The June figure came in down -0.6% versus a consensus of a +0.5% increase.

Sentiment on the JSE was cautious with the market eyeing movements in the rand, amid indications the dollar could resume its recent rally. This was interrupted on Friday when US President Donald Trump questioned the interest-rate tightening policy of the US Federal Reserve.

“Another rally in the dollar is imminent,” Nedbank analysts predicted, with the rand possibly weakening to R13.82 to the dollar.

It was at R13.4738 to the dollar from R13.4595 soon after the JSE’s opening.

Japan’s Nikkei gained 0.51% on a yen pullback as the index erased nearly half of its Monday’s slide, Dow Jones Newswires reported.

Chinese large caps were some of Asia’s best performers as financials continued to climb. The Shanghai Composite was up 1.6% and the Shenzhen Composite rose 1.3%.

Hong Kong stocks opened higher after modest gains Monday as the market continued efforts to provide breathing room from some of its lowest levels in a year. The Hang Seng rose 1.33%, with Tencent up 0.75%.

Brent crude was steady at $73.076 a barrel and gold was flat at $1,223.98 an ounce.

At 10am the all share was 0.51% higher at 56,845,10 points and the top 40 added 0.49%. Platinums rose 2.28%, banks 1.3%, financials 1.04%, resources 0.97% and general retailers 0.83%.

Anglo American rebounded 2.03% to R288.58.

Kumba Iron Ore jumped 3.39% to R300.41. The group reported headline earnings for the interim period were R2.98bn, down from R4.6bn a year earlier. It declared a dividend of R14.51 per share for the six months to end-June.

Reinet Investments slipped 0.68% to R242.42. It posted a 5% drop in net asset value in the June quarter, due to lower valuations for British African Tobacco and UK-based Pension Insurance Corporation Group.

Anglo American Platinum rose 2.9% to R370.45.

FirstRand was up 1.36% to R65.78 and Standard Bank 1.12% to R199.14.

Woolworths dropped 0.91% to R52.37 but Mr Price rose 1.57% to R227.92.

Hammerson was down 0.59% to R93.41 on flat results. But the interim dividend per share rose marginally to 11.1 UK pence from 10.7p.

Naspers was up 0.19% to R3,397.

Vodacom dropped 2.69% to R125.39. The group grew its prepaid subscribers to 37.7-million at June 30 from 34.2-million the previous year.