JSE firmer as Naspers shines and miners gain on rand
By Maarten Mittner - May 9th 2017, 12:10
The JSE opened firmer on Tuesday as the weaker rand boosted resources and mining stocks with an exposure to foreign markets.
The earnings of companies with foreign interest tend to rise in the case of currency depreciation.
Naspers was an early gainer, trading at record highs, again.
Miners were up despite platinum falling 0.75% to $912.55/oz. Spot gold was flat at $1,226.15/oz.
The local market also followed upbeat US data released last week, including unemployment data that showed that US unemployment dropped to 4.4% in April, a 10-year low. The dollar has gained in response, after initially weakening on the pro-EU centrist Emmanuel Macron’s victory in the French presidential election.
The Dow has so far reacted in a muted fashion to the positive US data and company earnings beating the consensus. The Dow Jones closed flat (+0.03%) on Monday in a lackluster trading session.
"We are encouraged by strong US earnings but are keeping our neutral view of US stocks,"BlackRock asset managers said.
European markets have reacted more positively to an inflow of funds on steady upward GDP growth in the area and views that US markets may be overvalued. The Paris CAC 40 has gained 11.1% so far in 2017 and the German Dax is up 10.6%.
"We see greater upside in European, Japanese, and emerging market shares, and advocate geographic diversification in equity portfolios," BlackRock said.
Asian markets were mixed on Tuesday morning with the Nikkei 225 losing 0.26% and the Hang Seng adding 1.02%.
At 9.44am the all share was up 0.70% at 54,071.60 points and the blue-chip top 40 added 0.82%. Resources were up 1.56%, industrials 0.68% and platinums 0.55%. The gold index lost 0.89% and general retailers 0.35%.
Glencore lifted 3.32% to R51.62 and Anglo American was up 2.93% to R182.20.
Rand hedge British American Tobacco gained 1.21% to R942.31.
AngloGold Ashanti was 2.35% down at R144.23 amid reports the group was reviewing its underperforming South African mines following the release of a trading update on Monday.
Among retailers, Massmart was off 0.79% to R127.28.
MTN dropped 0.65% to R118.
Naspers was up 1.95% to R2,658.92. © BusinessLIVE MMXVII
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