MARKET WRAP: JSE snaps five-session losing streak, led by banks

The JSE recovered from a weaker opening to close higher on Tuesday, led by a strong performance from banks and financial stocks.

Global sentiment towards equities was mildly negative for most of the day, with Asian markets mostly lower. Activity picked up as the Dow opened, however, with a strong performance by Boeing lifting the exchange.

The JSE all share rose 1.21% to 56,113.10 points and the top 40 1.33%. Banks gained 2.57%, financials 1.39% and industrials 1.32%. Platinums fell 0.47%.

A sell-off of tech stocks on Monday, as well as downbeat economic data, had put pressure on Asian stocks. Earlier, market heavyweight Naspers tracked a drop in the share price of Hong Kong-listed Tencent, in which it owns a sizable chunk. Naspers, however, recovered losses soon after US markets opened.

Locally, the rand was range-bound, something that is expected to continue until both the release of inflation data on Wednesday, and the South African Reserve Bank monetary policy announcement on Thursday.

Oil prices have come under pressure from a resumption in Libyan oil exports, as well as expectations of rising global production, reducing the prospects of interest-rate increases locally.

The Reserve Bank was only likely to become concerned if oil prices climbed towards, and above, $80 a barrel, said Investec chief economist Annabel Bishop. “The volatility in the rand oil price is reflective of the volatility in global markets and the Bank may choose to look through it.”

Sasol fell 0.9% to R429.40.

Rand hedge British American Tobacco slipped 1.76% to R665 and Anheuser-Busch InBev 0.92% to R1,365.

Standard Bank rose 3.05% to R194.74.

MTN was 3.29% up to R107.80, despite earlier announcing it would be increasing pricing of its WhatsApp data bundles, something that met with outrage on social media.

Anglo American Platinum was down 1.65% to R362, having earlier said it was committing R2.6bn to two UK-based venture capital funds, which would pursue applications for the use of platinum group metals (PGMs).

The JSE Limited rose 4.48% to R169, after an upbeat trading statement earlier.

Shortly after the JSE closed, the Dow was flat at 25,032.18 points, while in Europe the DAX 30 had gained 0.5%, the FTSE 100 0.38%, and the CAC 40 0.12%.

At the same time, gold had lost 1% to $1,228.49 an ounce and platinum 0.53% to $818.58. Brent crude was flat at $71.94 a barrel.

The top 40 Alsi futures index gained 1.21% to 50,022 points. The number of contracts traded was 29,025 from Monday’s 20,664.