MARKET WRAP: Miners help JSE limp higher as banks slump

The JSE pushed to a four-month high on Tuesday, but eased off the psychologically important 57,000 point level in the afternoon, as the banking index slid.

Banks lost 3% at one point, while general retailers were also under pressure. Eskom warned earlier it may need to intensify load-shedding to avoid a grid collapse.

Rand hedges fared well, however, while diversified miners extended Monday’s gains. Some miners have been boosted by a rising oil price, which earlier climbed above $68 a barrel for the first time in 2019.

The all share gained 0.14% to 56,849.7 points and the top 40 0.17%. Platinums added 1.43% and the resources index 1.31%. Banks slid 2.59%. As the JSE closed platinum was up 1.36% to $846.18/oz and gold 0.3% to $1,307.63. Brent crude was flat at $67.28 a barrel.

Oil has risen on continued pledges of production cuts by Saudi Arabia, while Venezuelan production continues to fall as a political crisis unfolds in that country.

Miners have been, by far, the best performing indices on the JSE so far this year. The platinum index has surged more than 60% in 2019, lifted by a rising palladium price — which is one of platinum’s sister metals.

Glencore rose 1.93% to R60.67 and Anglo American 1.57% to R381.51.

Sasol jumped 3.51% to R451.84.

Sibanye-Stillwater jumped 8.45% to R16.56, amid signs that the strike at its gold operations that began in November last year could be drawing to a close.

Rand hedge AB InBev gained 2.69% to R1,220 and Richemont 2% to R106.24.

Netcare added 0.78% to R25.80. It said earlier that it had completed its disposal of two hospitals for a total consideration of R124m. The disposals form part of an agreement related to its acquisition of Akeso Clinics.