MARKET WRAP: JSE begins fourth quarter on a positive note

The JSE began the last quarter of 2018 on an upbeat note on Monday, with a stable rand and improved global risk-sentiment providing a supportive environment.

Gains were pared in the afternoon, with a number of indices turning negative after being up earlier, while a 0.51% rise by Naspers to R3,067.30 ensured a positive close.

The all share ended the day 0.15% higher at 55,789.8 points and the top 40 0.13%. Banks fell 0.7% and financials 0.36%. Industrials rose 0.47% and food and drug retailers 0.41%.

The US and Canada struck a last-minute trade deal on Sunday, saving the North American Free Trade Agreement (Nafta) —although this is set to be renamed. Global stocks were cheered by the news, but local developments were less supportive.

The central energy fund earlier confirmed that the price of fuel will rise by about R1 a litre from midnight on Tuesday, but banks and retailers showed little reaction.

The seasonally adjusted Absa purchasing managers index (PMI), which gauges activity in the manufacturing sector, earlier came in at a weak 43.2 points in September, from 43.4 in August.

The PMI was reflective of weak operating conditions, including supply-driven inflation and subdued consumer activity, said Investec economist Lara Hodes. External risks left SA vulnerable to further pressure.

New-vehicle sales data for September was also disappointing, falling 2.6% compared to the same month in 2017.

Focus this month is expected to be on the medium-term budget policy statement, while global market focus is expected to remain on political risks in Europe, including Brexit, and ongoing tension over trade.

US stocks opened firmly higher, with the S&P 500 yet again reaching a record high.

Rand hedge British American Tobacco fell 2.48% to R651.21, while Richemont gained 0.89% to R117.10.

FirstRand fell 2.02% to R66.50.

Clicks gained 3.73% to R181.52.

Alexander Forbes surged 12.53% to R5.57, after earlier announcing the appointment of a new CEO — Dawie de Villiers.

Group Five gained 5.56% to 95c, ahead of its results for the year to end-June on Tuesday. The company said in August it expected a loss per share of between R13 and R14.50, between 56.8% and 74.9% worse than in the prior comparative period.

Shortly after the JSE closed the Dow was up 1% to 26,721.71 points, while in Europe, the FTSE 100 lost 0.14%, while the CAC 40 gained 0.15% and the DAX 30 0.64%.

At the same time, gold fell 0.33% to $1,188.30 an ounce while platinum gained 0.46% to $820.92. Brent crude was 0.87% higher at $83.57 a barrel.