JSE marks best weekly gain since July

The JSE ended higher on Friday, logging its best weekly gain since July, supported mainly by financial and industrial stocks.

Banks stood out as the cloud hanging over South Africa's credit rating lifted when Fitch Ratings and S&P Global Ratings affirmed the foreign-currency rating at investment grade.

Banks notched up just more than 6% to reach levels last seen in August last year and the sector is now the second-best-performing one on the JSE, behind the resource market.

"We believe we should take heart from this encouraging outcome towards the end of what has proved to be a tumultuous year on many fronts," Renier de Bruyn, investment analyst at Sanlam Private Wealth, said in a note.

The All Share index has had a rollercoaster ride, from Brexit to Donald Trump's victory in the US presidential election. Local politics was reflected in wide swings in the rand throughout the year.

The All Share recovered 3.34% over the week to settle at 50899.90 points at the close.

Its strength also came from the rebound in the broader industrial sector, which has for several years provided a solid underpin to the local market.

Steinhoff International jumped 18% in a rally that added about R47-billion to its market value, which now stands at R318.6-billion after its quarterly report. This week, the integrated furniture manufacturer and retailer reported a 20.3% rise in quarterly sales on a constant currency basis.

Bidvest was another top performer among blue-chip stocks, as were MTN Group and Life Healthcare Group. Retailers also rode the positive market momentum, which was partly attributed to the European Central Bank extending its stimulus programme.

Pulling on the downside were gold miners, which retreated for a fifth consecutive week.

The US Federal Reserve takes centre stage on Wednesday when it announces its decision on interest rates. The markets expect it to lift rates by 25 basis points.