MARKET WRAP: JSE pushes higher despite Capitec and Glencore slump

The JSE recorded broad-based gains on Tuesday, with banks and platinums bouncing back after a recent sell-off, although Capitec and Glencore posted sharp losses.

The rand was firmer on the day, as risk-on sentiment was given a boost by a political agreement in Germany over the migrant crisis in the EU.

A softer oil price gave further support to interest rate-sensitive shares, although the JSE was lower for most of the morning, as corporate news gave the market its initial direction.

Capitec faced reports that the South African Reserve Bank had requested a probe of its lending practices, sending that company’s share price 3.94% lower to R893. The Reserve Bank subsequently denied asking for a probe, but Capitec only pared losses slightly.

Diversified miner Glencore plummeted 8.57% to R58.54, following reports that its subsidiary in the Democratic Republic of the Congo (DRC) was facing a money laundering and corruption probe by US authorities.

US markets are closed on Wednesday for Independence Day, while investors are also waiting for significant risk events later in the week. A decision by US President Donald Trump on further tariffs on China is expected, as is US non-farm payrolls data for June.

Minutes from the US Federal Reserve’s June meeting, on Thursday, could also give the market some direction, with analysts expecting a hawkish tone.

Volumes on the JSE were low, at R13bn compared to the daily average of R24bn. The all share rose 0.58% to 57,488.8 points, and the top 40 0.6%. Banks gained 1.42%, platinums 2.03%, and food and drug retailers 1.71%.

Rand hedge British American Tobacco gained 1.17% to R705.13, while Richemont lost 0.57% to R114.99.

Steinhoff International surged 31.39% to R1.80, as markets continued to digest the company’s unaudited interim results to end-March, released on Friday.

Clicks jumped 2.91% to R203.02 and Pick n Pay 2.08% to R78.09.

Grindrod Shipping Holdings jumped 11% to R160.95.

Astral Foods gained 5.02% to R293.49.

At 5.30pm, the Dow was 0.21% higher at 24,357.21 points, while in Europe the DAX 30 had gained 0.82%, the CAC 40 0.79%, and the FTSE 100 0.53%.

At the same time, platinum had surged 3.43% to $845.55 an ounce, and gold 1.17% to $1,255.90. Brent crude was 0.59% lower at $76.93 a barrel.

The top 40 Alsi futures index was flat at 51,415 points. The number of contracts traded was 17,783 from Monday’s 24,212.