MARKET WRAP: JSE ends day higher, bolstered by miners

The JSE ended in positive territory for a second day this week on Friday, pushed higher by the mining index, as gold steadied after rising to its highest in nearly two months. 

“Gold continues to defy the sceptics, myself included, posting another strong rally overnight on low volumes. Gold climbed 0.80% to close at $1,511 an ounce”, said Singapore-based Oanda market analyst Jeffrey Halley.

“As gold moved up through $1,500 an ounce, I suspect that more stop-loss and computer-driven buying into low liquidity is the culprit. That said, the market is always right even if you know you are and resistance is futile now for gold bears. Far better for the irrational exuberance to run its course,” said Halley.

At 5.45pm, gold was at $1,512.20/oz and platinum at $944.09. Brent crude lost 0.19% at $67.80 a barrel. So far in 2019 gold has risen 16.54% and platinum 18.57%, their biggest gains since 2010.

European markets were mostly positive and Asian markets mixed on Friday, as China battled with its slowest economic growth in nearly three decades. However, there is some hope that phase one of the trade deal agreement will ease this trend. 

On Tuesday, US president Donald Trump said that he and Chinese president Xi Jinping will have a ceremony to sign the first phase of the trade deal agreed to this month. Beijing confirmed this, also saying this week that it was in close contact with Washington about the agreement

The deal is widely expected to be signed in early January.

Still, with no other major updates expected this year either on the trade front or on future Brexit negotiations, volumes are expected to remain light until the first full week of January, reported Reuters.

The JSE all share gained 0.37% to 57,430.70 points and the top 40 0.24%. Resources added 0.79%, gold miners 1.81%, and the platinum index 1.21%. 

Earlier, the Shanghai Composite was flat. Hong Kong’s Hang Seng had gained 1.30%, while Japan’s Nikkei 225 fell 0.36.

The Dow was last seen up 016% at 28,665.05 points. In Europe, the Frankfurt DAX was up 0.15%, the FTSE 100 and France’s CAC 40 were little changed.

At 5.50pm, the rand was 0.64% firmer at R14.0399/$, 0.14% down at R18.3703/£ and little changed at R15.6850/€. The euro was up 0.62% at $1.1165 — with Reuters

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