MARKET WRAP: Asian stock surge fails to lift JSE

The JSE failed to track positive sentiment on global markets on Monday, as a weaker rand and falling oil price weighed on local miners.

US President Donald Trump was giving the market much of its direction, with the price of oil coming under pressure after he tweeted his displeasure at rising oil prices.

Trump had also tweeted overnight that further tariffs would not be imposed on Chinese goods on Friday, due to substantial progress made in negotiations at the weekend. This has averted the prospect of an escalation in tension between the world’s two-largest economies.

The Shanghai composite surged 5.6% on the news that Trump expected to meet his Chinese counterpart Xi Jinping in coming weeks.

As the JSE closed, the rand was 1.04% stronger at R13.8287/$, making it the best-performing emerging market currency on Monday.

The all share was down 0.21% at 55,878.2 points and the top 40 was 0.2% lower. The resources index fell 1.29% and gold miners 1.78%.

Emerging markets had been eagerly awaiting a round of positive news for a long time, said FXTM head of global currency strategy Jameel Ahmad. Rising expectations that the long-running trade dispute was nearing a conclusion could continue to support emerging-market currencies, he said.

The rand continues to benefit from last week’s budget policy statement.

A decision not to directly bail out Eskom, and instead offer the embattled power utility a bridging loan, in particular is seen as move that may placate Moody’s Investors Services.

Moody’s is the only ratings agency that holds SA’s sovereign credit rating at above junk status, and a downgrade would prompt sharp selling of local bonds, and put pressure on the rand.

Diversified miner Glencore fell 1.47% to R55.80, BHP 1.34% to R327.36 and Anglo American 1.53% to R367.97.

Sasol fell 0.36% to R413. It said earlier that that attributable profit more than doubled to R15.9bn for the six months to end-December from R7.7bn in the prior period. In dollars, attributable profit growth was slightly lower — 94% versus 106% — rising to $1.1bn from $577m. Sasol raised its interim dividend by 18% to R5.90 for the period.

Super Group gained 0.88% to R34.35. It said earlier that net asset value per share grew 7% to R28.91 in the six months to end-December. Headine earnings per share (HEPS) rose 12% to R1.74 year on year.

Liberty Two Degrees fell 2.05% to R7.15 It earlier declared distribution per share for the year to end December of 60c, in line with previous guidance given to the market.

The Dow was up 0.65% at 26,200.56 points, while in Europe, the FTSE 100 was flat, while the CAC 40 had risen 0.42% and the DAX 30 0.67%.

Gold was up 0.34% at $1,331.69/oz and platinum 0.86% at $852. Brent crude was 1.61% lower at $65.82 a barrel.

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