MARKET WRAP: JSE pushes higher as rand steadies

The JSE gained on Friday but was negative for the third consecutive week as local stocks continue to come to grips with domestic economic and political uncertainty.

The Reserve Bank’s interest-rate decision on Thursday will likely serve as the largest single domestic factor moving equities in the forthcoming week. The Bank is widely expected to keep rates on hold, despite a rising oil price and recent turbulence in the rand.

Reports on Friday suggested that the third iteration of the Mining Charter will be completed by Monday and will be debated in a cabinet meeting on Wednesday, ahead of its implementation. This could mean some additional clarity is in the offing in the subsequent post-cabinet communication.

Local inflation data on Wednesday could also give direction to interest-rate sensitive shares, with the consumer price index expected to rise 5.1% year-on-year in August, according to a Bloomberg consensus forecast from 11 economists.

Global focus will remain on issues of a trade war, as further details emerge on pending US-China talks.

The all share firmed 0.74% to 56,581.9 points and the top 40 0.9%. Resources firmed 1.84% and financials 0.69%. Property stocks fell 0.81%. The all share lost 0.85% during the week.

Major corporate releases in the forthcoming week include Remgro and Group Five.

Remgro closed 1.2% higher at R209.88 on Friday, ahead of its results for the year to end-June on Thursday. In the prior period the group reported intrinsic net asset value per share of R251.48.

Group Five fell 5.31% to R1.07, ahead of its results for the year to end-June on Friday. The group warned in August that headline earnings per share (HEPS) would be between 52.4% to 70% lower than the prior comparative period.

Investec Ltd gained 9.8% to R103.29, after earlier saying it intended to spin off its investment management unit, which will be separately listed on the JSE.

Aspen Pharmacare slumped another 17.77% to R190.83, extending the losses it sustained on Thursday when it announced the sale of its infant-formula business to French multinational Lactalis.

Shortly after the JSE closed, the Dow was flat at 26,173.15 points, while in Europe, the FTSE 100 had gained 0.31%, the CAC 40 0.59% and the DAX 30 0.6%.

At the same time, platinum had fallen 0.4% to $801.05 an ounce and gold 0.38% to $1,196.98. Brent crude was 0.5% lower at $77.94 a barrel.