MARKET WRAP: JSE pushes higher for fifth month in a row

The JSE fell a little on Tuesday, but capped off its fifth-consecutive month of gains in April.

Trade in the local bourse was somewhat volatile, with the JSE firming earlier after data showed the eurozone economy expanded 0.4% in the first quarter of 2019, beating market expectations of growth of 0.3%.

Year-on-year the eurozone economy expanded 1.2% in the first quarter, also beating expectations of growth of 1.1%.

Unemployment data also came in better-than-expected, and although these releases were positive, they still did not seem good enough, said Oanda analyst Craig Erlam.

Sentiment was dented a little by poor Chinese data. A gauge of China’s factory activity weakened sharply in April, showing that economic stabilisation had not found a firm footing yet, reported Dow Jones Newswires.

As the JSE closed, the rand was 0.18% weaker at R14.3512/$.

The all share fell 0.23% to 58,528.4 points and the top 40 0.21%. Platinums fell 2.23% and industrials 0.19%. General retailers added 0.71%.

The Dow had fallen 0.2% to 26,501.54 points, while in Europe, the FTSE 100 had fallen 0.45%, the CAC 40 0.24% and the DAX 30 0.21%.

The JSE has been given a boost so far in 2019 by both a dovish turn by the US Federal Reserve, and by economic data showing that the global economy isn’t slowing as fast as feared.

US GDP beat expectations in the first quarter, growing at a blistering 3.2%, while a number of Chinese economic releases recently have also been upbeat.

Although local economic growth is muted, it is worth noting that the JSE does not fully reflect the SA economy, with more than half of revenue generated overseas, said Old Mutual multi-managers strategists Dave Mohr and Izak Odendaal.

Local markets are closed on Wednesday for the Workers’ Day public holiday. On Thursday, equities will react to the US Federal Reserve policy announcement, while the Bank of England will make its latest stance on monetary policy known on Friday.

US non-farm payrolls numbers are due on Friday. Volatility in local markets could pick up ahead of next week Wednesday’s national elections.

Diversified miner Glencore slumped 3.32% to R56.23, under pressure after reporting that copper production slumped 7% in its first quarter to end-March. Glencore fell 3.75% on Friday, on news it is being investigated by the US department of justice over its operations in the Democratic Republic Congo.

Rand hedge AB InBev added 1.67% to R1,279.64.

Sibanye-Stillwater lost 2.75% to R13.45. Late on Tuesday, the Association of Mineworkers of Construction Union (Amcu) said a large number mineworkers had been trapped underground.

Lonmin slumped 4.42% to R12.99.

Mr Price firmed 2.19% to R216.63.

Massmart gained 3.44% to R94.22.

Vodacom slipped 2.34% to R115.32. Ayo Technologies fell 12.73% to R12, its worst performance so far in 2019.

Astral Foods rose 2.46% to R182, despite it saying earlier that it expected headline earnings per share (HEPS) to decrease by between 50% and 55% for the the six months to end-March, partially due to higher feed prices.

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