MARKET WRAP: JSE bounces back on positive local and global factors

The JSE tracked a global rebound on Wednesday, with banks gaining 2%, given a further lift by reduced concern that the South African Reserve Bank will be forced to raise interest rates due to rand weakness.

Domestic inflation in May was recorded at an annual 4.4%, below the consensus forecast of 4.6%, largely due to less-than-expected increases in some food items. Analysts still expect the next move from the Bank to be an increase, with Investec economist Lara Hodes saying this was likely to occur in January 2019.

The data helped support banks, retailers and property stocks, which have been under pressure since Friday, when markets began pricing in the economic effects of geopolitical tension. Gains were pared, however, as US markets opened and the Dow struggled to snap a six-session losing streak.

The all share gained 0.71% to 56,651.70 points and the top 40 added 0.75%. Banks rose 2.17%, general retailers 1.66%, food and drug retailers 1.48%, and industrials 1.14%. The platinum index shed 1.28% and resources 0.68%.

Anglo American slipped 1.08% to R303.20. British American Tobacco rose 2% to R682.85. Impala Platinum slumped 4.42% to R20.76.

FirstRand rose 3.73% to R59 and Standard Bank 1.08% to R188. Sanlam added 2.31% to R71.85.

Shoprite was up 2.97% to R227.18 and Woolworths 1.23% to R55.

Naspers ended the day 2.2% higher at R3,280.64.

Brait gained 4.03% to R40.05, extending Tuesday’s 3.36% gain, which came despite an announcement that net asset value fell to R57.32 in the year to end-March, compared with a restated R77.63 in the prior period.

Murray & Roberts firmed 0.85% to R17.89, having announced on Tuesday that shareholders had approved a resolution to continue to pursue the acquisition of Aveng, which slipped 5.56% to 17c.

Accelerate Property Fund was unchanged at R5.25, having earlier reported distribution per share was almost flat at 57.55c in the year to end-March, compared to the prior period.

At 5.40pm, the Dow was 0.17% lower at 24,660.2 points, while European stocks were mixed. The FTSE 100 had gained 0.51% and the DAX 30 0.23%, while the CAC 40 had lost 0.14%.

At the same time, gold was flat at $1,274.36 an ounce, while platinum had gained 0.87% to $875.22. Brent crude had added 0.22% to $75.12 a barrel.

The top 40 Alsi futures index lifted 0.73% to 50,386 points. The number of contracts traded was 63,415 from Tuesday’s 112,740, ahead of the quarterly futures close-out on Thursday.