MARKET WRAP: JSE gets a boost from China’s $146bn stimulus pledge
The JSE finished convincingly higher on Thursday after an action-packed session as the reporting cycle by SA companies is in full swing.
The all share index gained 0.76% to 70,340.70 points, riding positive global market momentum after China pledged $146bn in infrastructure spending to stimulate its economy, which has been hurt by stringent lockdown restrictions to curb the spread of Covid-19.
Mining and industrial shares did the heaving lifting locally, with Naspers jumping 6% to finish at R2,612.27, the biggest gain since July 7. Impala Platinum was up 3.61% to R187.50 and Anglo American Platinum added 2.53% to R1,264.80.
Banking stocks had a decent session, gaining almost 1%, after coming off sharply in recent sessions, though the sell-off had come from a high base. But insurance stocks reversed gains to close 2.02% weaker after the Competition Commission said it was investigating at least eight of them for possible collusive behaviour.
The investigation involves Sanlam, Old Mutual, Hollard, BrightRock, FMI (a division of Bidvest Life), Momentum, Professional Provident Society and Discovery.
The listed property sector put in a positive performance but those with exposure to Europe continued to feel the squeeze amid recession fears there.
Capital & Counties ended 1.47% softer at R24.88, marking its lowest level since November 2020, while Hammerson dropped 3% to R4.35.
Construction stocks also came under pressure, with Murray & Roberts slumping 7% to R10.99 despite a positive trading update. The engineering group said headline earnings per share are expected to be as much as 32c in the year to end-June, rebounding from a loss of 14c a year earlier.
In the currency markets, the rand made good ground against the dollar as investors braced for a speech by US Federal Reserve chair Jerome Powell at the Federal Reserve Bank of Kansas City’s symposium in Jackson Hole, Wyoming, on Friday.
Markets will be looking for fresh signals from Powell at the annual meeting of top monetary policymakers on how far the world’s most influential central bank is willing to go in hiking interest rates to tame inflation that’s at record levels in the US and many developed nations.
At 6.50pm the rand was 1.21% stronger at R16.7774/$ and had firmed 1.36% to R16.6998/€. The euro, meanwhile, remained below parity to the dollar at $1/1.0042.
“The rand continues to be whipsawed by global events,” Nolan Wapenaar, co-chief investment officer at Anchor Capital, said in a note. “Much of what we have seen this quarter is more a function of the strong US dollar than domestic weakness.”
Source: businesslive.co.za
