Strong performance from BHP lifts JSE

The JSE was firmer on Wednesday morning, with indices mixed, but with a strong performance by diversified miner BHP ensuring a positive start to the day.

The rand was marginally weaker against the dollar, with the greenback recently buoyed by bullish commentary from US Federal Reserve chairman Jerome Powell.

Banks and retailers were among those under the most pressure, but the resources index was firmly higher, led by BHP. The global diversified miner was up almost 3%, having earlier released a better than expected production report.

At 9.30am the all share was up 0.1% to 56,171.4 points, while the top 40 had gained 0.1%. Banks were down 1.09% and financials 0.68%, while resources had added 1.4%.

Risk events on Tuesday include inflation data at 10am, with that release expected to give some indication of the tone that will be struck by the Reserve Bank on Thursday.

Statistics SA is expected to report that inflation, as measured by the annual change in the consumer price index, accelerated to about 4.8% in June from 4.4% in May.

Positive sentiment on global markets is expected to continue on Wednesday, albeit in a cautious manner, as investors watch for any further commentary from the White House.

Corporate earnings releases in the US continued to impress, and Powell’s testimony before US Congress, which continues on Wednesday, lifted sentiment, said Nedbank Corporate and Investment Banking analysts.

Marginal foreign interest in SA’s bonds also continued.

In terms of local shares on Wednesday morning, BHP was up 2.85% to R291.74.

Standard Bank lost 1.19% to R192.43, FirstRand 1.12% to R64.41 and Absa 1.06% to R156.32.

MTN fell 1.15% to R106.56.

Naspers was 1.03% lower at R3,337.23.

At the same time platinum was down 0.86% to $809.85/oz and gold 0.37% to $1,223.01. Brent crude was 0.14% lower at $71.48 a barrel.