JSE opens higher as banks continue to recover

The JSE opened firmer on Tuesday as the market continued its recovery from last week’s sharp sell-off.

The market remained fragile ahead of the expected US interest-rate increase on Wednesday‚ analysts said. South African markets will be closed on Wednesday for the Day of Reconciliation holiday.

Barclays Research said US Federal Reserve chairwoman Janet Yellen did as much as could reasonably be expected in her recent public appearances to prime markets for December’s liftoff.

"Confidence in the outlook for domestic activity‚ further improvement in labour markets and‚ over time‚ a return in inflation to 2%‚ leave the Fed in a position to raise rates for the first time since 2006‚" Barclays said.

Asian markets were mixed with the Shanghai Composite 0.29% weaker. The Hang Seng rose 0.4%. The Dow closed 0.6% higher on Monday.

At 9.27am‚ the all share had gained 0.45% to 48‚298.70 and the blue-chip top 40 added 0.22%. Banks led the gainers‚ firming 1.59% and platinums added 0.65%. Industrials traded 0.54% higher. Financials gained 0.48%. The gold index was 0.89% lower.

The property index was 1.41% stronger.

An analyst at Capital Economics said the recent series of unexpected cabinet reshuffles — in which SA had three finance ministers in four days — has dented the political and economic credibility of President Jacob Zuma.

"The president’s credibility may take longer to recover than that of the rand."

The fact that the president was forced into such a public climb-down suggests that figures within the ANC-led government were able to bring significant pressure to bear on the increasingly unpopular president.

"While it is too soon to tell what the long-term effect of this self-imposed crisis will be‚ new Finance Minister Pravin Gordhan will face an uphill battle in regaining investors’ confidence‚" Capital Economics said.

Among individual shares Anglo American was 1.63% lower at R65.98.

SABMiller softened 0.89% to R919.

Among banks Standard Bank rose 2.45% to R108.60. Nedbank lifted 1.74% to R181.09.

Sanlam was 2.13% up at R50.89.

Among property stocks Growthpoint droppped 0.64% to R21.84‚ while New Europe Investments gained 1.41% to R168.84.

Industrial group Remgro was 1.19% higher at R238.80.

- TMG Digital/BDlive