MARKET WRAP: Banks and financials gain despite fall in rand

The JSE closed higher on Thursday, with bank and financial shares rising despite a weaker rand.

The all share gained 0.37% to 58,743.6 points, and the top 40 0.42%. Banks and financials stood out as the biggest contributors to the gains with the indices adding 1.46% and 1.51%, respectively.

Investec Ltd rose 3.3% to R94.36, Absa 2.67% to R168.65, Nedbank 2.42% to R272.50, FirstRand 0.87% to R68.50, and Standard Bank 1.51% to R202.

Among financials, Alexander Forbes added 1.66% to R5.52, Liberty 3.51% to R107.13, MMI 3.59% to R18.49, Coronation 2.46% to R52.39, Discovery 3.42% to R148.98, Sanlam 3.28% to R79.01, and Old Mutual 1.26% to R23.28.

Gold prices fell after the US Federal Reserve said earlier that it was unlikely to raise interest rates again any time soon. This had a deleterious effect on the sector, with the index slumping 3.4%. Sibanye-Stillwater was the biggest loser, down 6.99% to R12.51. It was followed by Harmony Gold, which fell 5.09% to R23.29 and AngloGold Ashanti lost 3.48% to R166.31.

Earlier, Harmony released a production update for the nine-month period ending March 31. The company said an  increase in electricity prices had pushed its costs up from R520,000/kg  to R540,000. It added, however, that it was still on track to meet its production guidance of 1.45-million ounces

Platinum miners relinquished 2.09%, with Lonmin the biggest loser, down 6.16% to R12.19.

General retailers gained 1.3%, with TFG rising 2.29% to R189, Woolworths 1.45% to R48.40, and Mr Price 1.72% to R220.35. The latter made its debut on the A2X exchange, but will maintain its primary listing on the JSE. The retailer joins the likes of Naspers, Standard Bank and Sanlam, who also have secondary listings on A2X.

EOH continued its recovery, jumping 17.24% to R23.94, while Vodacom gained 2.02% to R117.65.

Naspers added 0.98% to R3,690.80.

Property shares were mostly higher, with the index adding 0.34%. Redefine gained 1.02% to R9.95, Fortress A 1.04% to R19.47, and Capital & Counties 1.75% to R46.

At 6pm, the rand had fallen 0.6% to R14.5422/$, 0.48% to R16.2609/€ and 0.45% to R18.9539/£. The euro was 0.13% lower at $1.118.

Gold was down 0.44% to $1,270.98/oz and platinum 1.86% to $851.98.