MARKET WRAP: JSE edges higher as markets await Trump’s next move

The JSE edged higher on Wednesday, in lacklustre trade, as global markets treaded water, with US markets closed for Independence Day.

Looming risk events in coming days gave global investors reason for caution. US Federal Reserve minutes on Thursday, non-farm payrolls numbers on Friday, and expectation that US President Donald Trump will announce additional tariffs on China on Friday, have hovered over the market this week.

“Investors are likely to remain edgy, especially when considering how the US is set to slap a 25% tariff on up to $34bn worth of Chinese products on Friday,” said FXTM analyst Lukman Otunuga. With Beijing expected to impose a similar tariff on a list of US good on the same day, US-China trade tension could reach new heights.

Local news was mildly positive, with the Standard Bank whole-economy purchasing managers index (PMI) for June edging up to 50.9 index points from 50 in May.

The rand was a little weaker on the day, failing to provide much direction for local equities. Turnover on the JSE was just short of R10bn, compared to the average of R24bn.

The all share gained 0.19% to 57,600 points and the top 40 0.17%. Banks added 1.49% and financials 1.24%. General retailers gave up 0.95%.

Naspers fell 0.2% to R3,408, tracking losses in Hong Kong-listed Tencent, in which it has a sizeable share.

After plummeting more than 8% on Tuesday, Glencore fell a further 1.28% to R57.79. The company has been subpoenaed by US authorities for documents relating to possible corruption and money-laundering charges.

Anglo American gained 2.21% to R303, while BHP was 2.77% lower at R295.65.

British American Tobacco added 1.05% to R712.55.

Capitec firmed 2.43% to R873.75. On Tuesday, the South African Reserve Bank denied requesting an investigation into Capitec’s initiation fees on one of its discontinued loan products.

Steinhoff International lost 2.22% to R1.76 after the company declared a preference share dividend last week. It rocketed 31.39% on Tuesday.

Trading ex-dividend, Alexander Forbes fell 7.49% to R5.19.

At 5.30pm, the DAX 30 was off 0.38%, the FTSE 100 0.32% and the CAC 40 0.08%.

Gold was up 0.21% to $1,255.36 an ounce while platinum was 0.27% lower at $838.19. Brent crude was flat at $77.80 a barrel.

The top 40 Alsi futures index was up 0.37% to 51,695 points. The number of contracts traded was 11,496 from Tuesday’s 17,783.