MARKET WRAP: JSE led higher by banks, financials on positive credit data

The JSE pushed higher in choppy trade on Monday, given a boost as private-sector credit extension data for June beat market expectations.

A stable rand and the positive data helped ensure broad-based gains, with banks and financials benefiting the most.

The all share firmed 0.26% to 57,313.1 points and the top 40 0.2%. Banks firmed 1.36%, gold miners 2.53% and financials 0.98%. Industrials were flat, while resources fell 0.58%.

Credit extended to companies accelerated to 6.6% year on year in June, from 4.8% in May, while household credit grew 4.5% year on year in the same month.

The growth in corporate general loans and advances likely signified borrowing related to cash-flow management, due to a weak economic growth environment, says Investec economist Lara Hodes.

Most major global stock exchanges were under some pressure on the day, with analysts saying a cautious start to the week was likely due to looming risk events. These include the release of results by tech-giant Apple on Tuesday, while both the Bank of England and US Federal Reserve are expected to pronounce their latest stances on monetary policy on Thursday.

Corporate earnings from tech giants have weighed on the market recently, with the tech-heavy Nasdaq 1.14% lower shortly after the JSE closed.

Diversified miner Glencore fell 1.03% to R55.96 and Anglo American 1.02% to R289.99.

Hulamin jumped 8.48% to R4.99, after saying earlier revenue grew 3% to R5.3bn in the six months to end-June.

Standard Bank gained 1.87% to R203.01 and Nedbank 1.82% to R273.50.

Imperial Holdings gave up 1.02% to R213.57, after announcing that CEO Osman Arbee had suffered a minor stroke and had taken medical leave.

EOH fell 2.3% to R40.30, having earlier unveiled a R1bn empowerment deal that would lift its black shareholding above 50%.

Massmart firmed 3.8% to R117.50, after releasing an statement earlier in which it reported a slight uptick in trading conditions.

Ellies Holdings closed flat at 34c, after earlier reporting an 8% increase in group revenue for the year to end-April.

Naspers lost 1.28% to R3,315.08.

At 5.30pm the Dow was 0.11% lower at 25,425.08 points, while in Europe, the FTSE 100 was flat, the DAX 30 had lost 0.34% and the CAC 40 0.26% weaker.

At the same time, gold and platinum were flat at $1,224 and $830.76 an ounce respectively, while Brent crude had firmed 0.79% to R74.91 a barrel.

The top 40 Alsi futures index gained 0.2% to 51,287 points. The number of contracts traded on was 18,027 from Friday’s 16,581.