JSE all share ends week at another record high

The JSE all share closed at a second‚ consecutive record level on Friday as the weaker rand supported retailers and property stocks‚ following mixed US jobs data.

The all share was up 0.54% at midday‚ but lost some ground toward the close‚ before recovering later‚ while gold stocks pared gains on the stronger dollar. Platinum stocks ended flat‚ while the price of the precious metal fell.

Brent crude was more than 3% lower in late trade‚ at $55.20 a barrel‚ on rising global output‚ as tropical storm Nate continued on its path towards the US coast line.

Retail and property stocks proved popular on the day‚ with volumes firming to more than R27bn at the close‚ more that the R15bn recorded on Thursday.

The rand weakened 0.5% to R13.77 to the dollar in afternoon trade‚ from R13.69‚ on a firmer dollar after US jobs data indicated strong wage growth‚ which could result in higher consumer inflation in the US over the medium term and so support further rate hikes by the US Federal Reserve.

Emerging-market currencies were sold off in the wake of the September US jobs data‚ which highlighted a continued decline in the unemployment rate‚ even though it showed the US labour market losing jobs for the first time in seven years.

Investors are now growing more confident that the Fed will raise interest rates again this year‚ which is likely to pressure emerging-market assets that have posted big rallies this year‚ due‚ in part‚ to the Fed’s cautiousness‚ Dow Jones Newswires reported.

The dollar gained 1.3% against the Turkish lira and 0.4% to the Mexican peso.

The recent growth in US wages would probably further encourage the Fed to hike rates by 25 basis points in December‚ despite the 33‚000 drop in the overall number of those employed‚ said Stanlib economist Kevin Lings. “We expect the non-farm payroll data to improve in the months ahead as the impact of the hurricanes dissipates.”

Analysts at Bank of America Merrill Lynch said the greenback could end the year firmer‚ at $1.15 to the euro. This could further pressure the rand.

The Dow was flat at the JSE’s close and European markets mixed‚ with the CAC 40 having lost 0.45%‚ while the DAX 30 hit a record high.

The gold price was at $1‚270 an ounce in the late afternoon‚ recording its fourth weekly decline.

The all share closed 0.41% higher at 57‚231.90 points and the blue-chip top 40 added 0.44% to 51‚010.40‚ also a record. Food and drug retailers gained 1.54%‚ general retailers 0.65%‚ property 0.55%‚ industrials 0.54%‚ and financials 0.29%. The platinums index lost 0.05%.

The all share ended the week 2.97% higher‚ its best weekly performance since July. It has gained 12.99% so far this year.

Glencore closed 0.11% higher at R66.14. The group announced earlier it had secured a 75% interest in Chevron SA‚ and the whole of Chevron Botswana‚ in a $973m (R13.3bn) deal that it will settle in cash.

Sasol gained 0.83% to R385.

Kumba Iron Ore closed 3.84% lower at R232.75.

British American Tobacco added 1.51% to R853.67.

Lonmin surged 16.9% to R15.15‚ after the platinum producer said earlier it had fulfilled the last requirement to buy out its partners in its Pandora project. Nearly a year ago‚ Anglo American Platinum agreed to sell its 42.5% stake in Pandora for R400m cash and a share of profits for six years.

Anglo American Platinum was 1.59% lower at R355.26.

In banks‚ Barclays Africa gained 0.65% to R142.98‚ but Standard Bank lost 0.39% to R160.12. Capitec was up 0.79% to R893.04.

Financial services group Discovery shed 1.77% to R138.50‚ but MMI Holdings rose 2.46% to R17.93.

Steinhoff gained 2.01% to R60.50‚ Shoprite 1.16% to R212.16‚ and Spar 2.79% to R171.15.

Group Five rocketed 14.5%‚ to R9‚ paring losses during the week to about 17%. The gains came after its new management said it was evaluating numerous offers for various subsidiaries and assets.

Naspers was up 0.9% to a record R3‚164.69. It gained 8.38% in the week.

Mediclinic rose 3.52% to R122.80. – Business Day

By: Maarten Mittner

Source: TMG Digital.