MARKET WRAP: JSE ends July with broad-based gains, led by retailers

The JSE gained on Tuesday, with most indices pushing higher, while gold miners and Naspers came under strain.

Global markets were mixed, as was local data, but domestic equities continued to find support from a stronger rand.

The all share rose 0.21% to 57,432.5 points and the top 40 0.17%. General retailers gained 1.66%, resources 1.37% and banks 1.13%. Industrials fell 0.63%. The all share lost 0.31% in July.

Earlier, SA’s unemployment rate was reported at 27.2% in the second quarter from 26.7% in the first, while SA’s trade surplus for June was more than twice market expectations at R12bn.

Disappointing employment statistics suggest the economy remains depressed, said Nedbank Group Economic Unit analysts. Activity is, however, likely to pick up in the rest of the year.

Global markets were mixed, with sentiment dented somewhat in the morning session when the Chinese manufacturing purchasing managers index hit a 14-month low.

Tencent, Naspers’s Hong Kong-listed associate, fell more than 3%. It has been under strain of late from a global sell-off of tech stocks.

The rand is expected to remain somewhat range-bound on Wednesday, when the US Federal Reserve announces its latest stance on monetary policy after local markets close. Other risk events this week include a Bank of England interest-rate announcement on Thursday, and US non-farm payrolls data on Friday.

Diversified miner Glencore added 3.22% to R57.76, Anglo American 2.68% to R297.77, and BHP 1.55% to R302.15.

Mr Price firmed 2.92% to R235.14 and Truworths 3.06% to R81.86.

Naspers fell 2.2% to R3,242.

Telkom rose 2.21% to R50.39 and Vodacom 1.67% to R140.25.

MTN gained 0.23% to R114.50 despite reports that its plans to roll out fibre internet in Iran were on hold due to US-imposed sanctions on that country.

ArcelorMittal gained 0.63% to R3.20 ahead of its interim results to end-June on Wednesday.

At 5.30pm, the Dow was up 0.45% to 25,423.18 points, while in Europe the FTSE 100 had gained 0.93%, the CAC 40 0.62% and the DAX 30 0.4%.

At the same time, platinum had firmed 0.57% to $833.28 an ounce and gold 0.14% to $1,223.29. Brent crude had fallen 0.85% to $74.82 a barrel.

The top 40 Alsi futures index gained 0.48% to 51,486 points. The number of contracts traded was 16,468 from Monday’s 18,027.

Source: businesslive.co.za