MARKET WRAP: JSE snaps three-day losing streak

The JSE got a welcome reprieve on Thursday, ending three straight sessions of losses, while the rand recovered to below the R19/$ level.

The JSE all share index closed 0.91% higher at 72,344.40 points, while the top 40 added 1%. Industrials rose 1.19%, banks added 1.17%, financials were up 0.93%, resources garnered 0.77% and the precious metals & mining index firmed 0.75%. 

Richemont was one of the main movers after the luxury goods group reported sales in China, including Hong Kong and Macau, increased by 25%, countering concerns about a slowdown in the region as its economy cools, Reuters reported.

Its shares rose 10.85% to R2,550.31 on the JSE — the biggest increase since November 11 2022.

Northam Platinum was also a feature, with its share closing up 5.34% at R129.29, reflecting a 2% jump in the platinum price.

SA automotive company Motus initially recorded its biggest one-day drop since early October after reporting that profit for the six months to end-December would fall as much as 30%. However the shares later recovered and closed 4.7% higher at R107.

Most global stock markets were higher as the dollar eased somewhat and investors continued to search for clues about the timing of rate cuts by the US Federal Reserve.

Reuters reported the number of Americans filing new claims for unemployment benefits fell last week to the lowest level since late 2022, suggesting US job growth probably remained solid in January. Initial claims for state unemployment benefits dropped to a seasonally adjusted 187,000 for the week ended January 13, according to Labor Department data. Economists surveyed by Reuters had forecast 207,000 claims for the period.

At 7.19pm, the Dow Jones industrial average was down 0.21%, while in Europe, London’s FTSE 100 closed 0.14% higher. France’s CAC 40 added 1.13% and Germany’s DAX 0.83%.

The dollar was slightly weaker after reaching a one-month peak on Wednesday.

“Doubts of the dollar weakening sharply this year are growing, and traders are becoming more circumspect about their outlook,” said Andre Cilliers, Currency Strategist at TreasuryONE.

“Geopolitical events are starting to have a more significant impact, while the prospect of a Trump second term is clouding the market’s outlook for the greenback.”

The rand weakened to more than R19/$ on Wednesday and touched an intraday weakest of R19.18 on the back of the negative risk mood — the worst in five weeks. However, the local unit staged a good recovery on Thursday amid a softer greenback.

At 7pm the rand had strengthened 0.71% to R18.9243/$, 0.83% to R20.5518/€ and 0.48% to R24.0074/£.

Gold was 0.41% higher at $2,014.05/oz and platinum was up 2.08% at $898.27/oz. Brent crude was 0.26% higher at $78.25 a barrel. 

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