MARKET WRAP: JSE lifts 2% as markets cheer easing eurozone risks

The JSE capped a tumultuous five sessions by closing higher on Friday, ending the week firmer as well, as sentiment improved somewhat and investors returned to riskier assets.

Concern over a global trade war and a crisis for the euro, stemming from the political situation in the currency bloc, eased as the weekend approached. The local bourse also saw broad-based gains on Thursday following pressure on emerging markets earlier in the week.

Banks and industrials led the gains on Friday, with market heavyweight Naspers at the front. The gold index firmed 3.76% for the week, bolstered by safe-haven trade as well as upbeat Chinese economic data.

US markets were lifted on Friday by US job numbers for May, which beat expectations. Analysts said that despite rising trade tension between the US and Europe, the market appeared to be at least partially pricing in a compromise between the two.

Momentum Securities analysts said a pullback in US treasury yields from their recent highs was encouraging for share markets in general.

The all share rose 2% to 57,282.1 points and the top 40 2.19%. Industrials gained 2.37%, platinums 2.01%, resources 1.85%, and property stocks 1.24%.

The JSE rose 0.64% for the week.

Sasol jumped 5.25% to R481.50 and Assore 6.04% to R289.76.

Anglo American gained 2.74% to R346.02.

Barclays Africa gained 3.58% to R167.47 and Capitec 2.63% to R897.41.

Vodacom added 2.98% to R147.77 and MTN 2.8% to R117.71.

Mr Price was up 1.85% to R255.65 after earlier reporting that overall revenue grew 8% to R21.3bn and its net profit 23% to R2.8bn in the year to end-March.

Tongaat Hulett slipped 2.25% to R79.18 after an Investec report on Thursday sent the share sharply lower. The institutional investor called for Tongaat’s CEO Peter Staude to step down after Monday’s “appalling” results, which revealed a 37% plunge in headline earnings per share (HEPS).

Shortly after the JSE closed, the Dow had gained 0.83% to 24,620.34 points, while in Europe the CAC 40 had added 1.41%, the DAX 30 1.22% and the FTSE 100 0.5%.

At the same time, gold had fallen 0.11% to $1.296.50 an ounce while platinum was up 0.16% to $909.08. Brent crude had fallen 1.49% to $76.61 a barrel.

The top 40 Alsi futures index gained 2.34% to 51,139 points, having gained 0.63% for the week. The number of contracts traded was 23,674 from Thursday’s 30,208.