MARKET WRAP: JSE closes higher as Naspers continues to rise

The JSE rebounded on Wednesday to record its best one-day performance in a month as the local market was boosted by Naspers and mining stocks, amid broad-based gains.

Naspers closed 3.8% higher at R3,430, pushing its gains for the week to nearly 8%, while Sasol rose 2% to R544.96.

Commodities were supported by a stronger Brent crude price, following a drop in US inventories. A potential shortfall from November due to US sanctions on Iran provided a fillip to the oil market. At 6.30pm Brent crude was 2.5% higher at $74.63 a barrel.

The Dow was flat at the JSE’s close but was set to record the longest period of uninterrupted gains in American history, according to CNN.

The JSE shrugged off a possible trade war between the US and China, and looked ahead to the release of minutes from the US Fed later in the evening.

Local consumer inflation for July, released on the day, had little effect on the market, although some analysts believe the data could push the Reserve Bank to hike interest rates. Others said the Bank was more likely to wait for any follow-through effects on the already subdued economy.

Consumer inflation accelerated to 5.1% in July from 4.6% in June. Analysts had expected a rise to 5%.

The all share closed 1.64% higher at 58,126 points, the first close above 58,000 points since July 10. Platinums rose 2.67%, industrials 1.99%, banks 1.6%, resources 1.54% and general retailers 1.03%. The gold index slipped 0.06%.

Kumba Iron Ore leapt 3.46% to R271.85 and Exxaro 6.21% to R156.39. Impala Platinum added 2.83% to R16.74.

FirstRand gained 2.07% to R66.55.

Shoprite recovered 3.05% to R209.20. It lost more than 4% on Tuesday following the release of disappointing annual results.

Resilient fell 2.16% to R58.31 and Fortress B 4% to R16.55.

The rand was last seen at R14.1831 to the dollar from R14.3921, while the euro was at $1.1602 from $1.1571.

The dollar showed little reaction to news that Trump’s lawyer Michael Cohen pleaded guilty to charges related to election-campaign violations. This brings to eight the number of people within Trump’s inner circle who have been found guilty on indictments from the Mueller special counsel investigation, or related court cases.

The R186 benchmark government bond was last bid at 8.95% from 8.99%.

The top 40 Alsi futures index gained 1.65% to 51,873 points. The number of contracts traded was 24,925 from Tuesday’s 16,939.