JSE pushes higher despite pressure on tech stocks

The JSE firmed on Friday, posting broad-based gains as global markets continued to benefit from receding fears over global trade.

The all share closed higher for the day and for the week, given a boost on Friday by better-than-expected US GDP numbers for June.

Risk-on sentiment in global markets also assisted the rand, which ended the session firmer against major global currencies, as was the case with most of its emerging-market peers.

The all share rose 0.74% to 57,162.4 points and the top 40 0.83%. Resources firmed 1.17%, banks 0.81% and property stocks 0.67%. Gold miners fell 0.33%. The all share gained 0.3% in the week.

Global stocks generally brushed off precipitous falls by some tech stocks this week, including Facebook, which tumbled 19% on Thursday, following a disappointing earnings report. “In terms of value, the Facebook drop … was the biggest in US history. About $150bn wiped off of its market cap overnight; enough to buy Naspers and Sasol, and still have a few billion in change,” said Vestact analysts.

Twitter saw its shares plunge as much as 15% on Friday, after it reported its first drop in monthly users for more than a year.

Local news on Friday was light, although sentiment was supported by the Brazil, Russia, India, China and SA (Brics) summit this week, which, among other things, saw a $14.7bn investment pledge from China.

Diversified miner BHP gained 2.16% to R295.50 and Glencore 0.44% to R56.54.

Rand hedge British American Tobacco gave up 2.74% to R710. On Thursday it reported an 11% rise in cigarette sales in the six months to end-June.

FirstRand gained 1.04% to R67 and MTN 2.88% to R110.95.

Shortly after the JSE closed, the Dow was flat at 25,533.94 points, while in Europe the FTSE 100 had risen 0.5%, the DAX 30 0.37%, and the CAC 40 0.39%.

At the same time, platinum had firmed 0.5% to $828.95 an ounce, while gold was up 0.15% to $1,224.16. Brent crude had gained 0.18% to $74.54 a barrel.