Platinums and industrials lead JSE’s rebound
The JSE opened stronger on Wednesday‚ with all the major indices up‚ as the market followed firmer Asian markets‚ despite a weak showing on Wall Street on Tuesday.
Platinum and industrial shares led the charge‚ with Naspers jumping 3% after its Chinese Tencent investment — in which Naspers owns a 34% stake — rose in Hong Kong trade.
Weaker commodity prices failed to affect miners as the rand weakened marginally to R12.96 to the dollar from an overnight close of R12.90. Miners act as rand hedges when the rand weakens.
Analysts said it was likely the all share would regain the momentum it lost on Tuesday‚ when it closed lower for the first time in seven sessions.
“Tuesday’s losses‚ although anticipated‚ were in fact somewhat overdone and created positive conditions for a short-term improvement in tone‚” said Momentum SP Reid analysts.
The Dow closed 0.25% lower at 21‚574.73 points amid concern about a further logjam in President Donald Trump’s legislative programme after two Republican senators opposed the Republican healthcare bill‚ leading to the dollar weakening. Quarterly earnings results from Goldman Sachs beat consensus expectations‚ but lower revenues from the bond market dragged the share lower.
The Nikkei 225 added 0.10% and the Hang Seng gained 0.50%.
The platinum price was 0.27% lower at $923.88/oz and gold softened 0.18% to $1‚240/oz.
At 9.30am the all share was 0.96% higher at 53‚773.60 points and the blue-chip top 40 rose 1.15%. The platinum index rose 1.63%‚ industrials 1.20%‚ resources 0.86% and banks 0.67%.
The market focus was on heavyweight Naspers‚ climbing 2.89% to R2‚773 after a similar showing from Tencent as concerns eased about a further cutback on gaming downloads.
Anglo American Platinum recovered 1.65% to R320.69 after falling on Tuesday on its operational update. Lonmin continued its rebound‚ adding 5.86% to R15.35 following the release of an interim update that indicated the troubled platinum producer was in better shape than previously thought.
Retailers were mostly flat with a weaker bias after the release of a number of subdued earnings updates recently‚ reflecting the reality of the recession. Shoprite dropped 0.25% to R199.50 although Woolworths added 0.13% to R60.73.
MTN added 0.48% to R120.32.
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