MARKET WRAP: JSE closes higher as markets cheer trade-truce optimism

05 September 2019 - 18:15 By Odwa Mjo
Picture: MICHAEL ETTERSHANK
Picture: MICHAEL ETTERSHANK

The JSE closed firmer on Thursday, in line with most global markets, as progress in the US-China trade war lifted sentiment. 

China's commerce ministry confirmed on Thursday that the US and China would meet in Washington DC in October to resume trade negotiations. Trade teams from both economic superpowers will hold ministerial-level talks in mid-September. 

“The lift in risk sentiment appears mitigated by the concern that the latest positive developments surrounding the US-China trade impasse may prove fleeting, and does not yet fully nullify the downside risks to the global economy,” FXTM  market analyst Han Tan said, however.

“In order for risk sentiment to push significantly higher, markets will need to be shown material signs that US and China are indeed drawing closer to a meaningful and lasting trade deal,” Tan said

Earlier, the Shanghai Composite rose 0.96% and Japan's Nikkei 225 2.12% while Hong Kong's Hang Seng was flat. 

Shortly after the JSE closed, the Dow added 1.64% to 26,788.16  points. In Europe, the FTSE 100 was down 0.64% while France's CAC 40 was up 0.99% and Germany's DAX 30 0.81%.  

Locally, SA's current-account deficit deteriorated to 4% in the second quarter of 2019 from 2.9% in the first quarter. SA's deficit on the current account of the balance of payments widened by R60.5bn to R204bn from R143.5bn. 

At 5.18pm, the rand had weakened 0.45% to R14.8673/$, 0.54% to R16.4231/€ and 1.06% to R18.3267/£. The euro had firmed 0.11% to $1.1047. 

Gold was down 2.2% to $1,518.23/oz and platinum 2.67% to $960.75. Brent crude was up 2.6% to $62.06 a barrel. 

The JSE all share rose 1.04% to 55,476.40 points and the top 40 1.11%. Banks gained 2.55% and financials 2%. 

Impala Platinum gained 0.87% to R85.60. The mining company said on Thursday that its revenue rose to R48.6bn in the year to end-June, from R35.8bn in the previous year. 

Sanlam added 2.75% to R73.87. The company said on Thursday that its diluted headline earnings per share fell 32% to 169c in the six months to end-June. 

Firstrand was up 1.67% to R61 after it said on Thursday that its basic and diluted headline earnings per share increased 5% to 497.2c in the year to end-June.

Capitec Bank rose 4.68% to R1,168 after it said on Thursday that it expects headline earnings per share to increase between 18% to 21% to between 2,511c and 2,575c in the six months to end August. 

MAS Real Estate jumped 20.79% to R19 after the company said on Thursday that its distributable earnings per share increased 41.9% in the year to end-June. 

Hyprop dropped 10.85% to R59.96. The company said on Thursday that its headline earnings per share decreased 65.8% to 259.7c in the year to end-June. 

Massmart climbed 6.34% to R46.29. On Thursday, the retailer announced changes to its board committees including the resignation of company secretary Joe Ralebepa. 

Bell Equipment gained 3.26% to R9.50 after the company said on Thursday that it expected its headline earnings per share to increase between 21% and 30% to between 160c and 170c in the six months to end-June. 

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