Wed, 08 Jul 2020

Rand holds steady as JSE advances

12 Jun 2019, 04:13 GMT+10

Global equity markets continued to rally on Tuesday as the Bank of China (BOC) stepped in to provide liquidity in the Chinese market. The BOC stated that it would provide more stimulus for local governments as China attempts to keep the economy afloat as it endures higher trade tariffs from the US.

Asian markets were firmer today as the Shanghai Index gained 3.01%, as the market was boosted by news of further fiscal stimulus. The ASX200 advanced 1.59% whilst the Hang Seng and the Nikkei chalked up gains of 0.76% and 0.33% respectively.

South Africa Manufacturing production for the month of April came in at 4.6%, beating market expectations. This came in as a surprise to many analysts as the market had baked in a weaker number. Positive contributions came from basic iron and steel, metal products and machinery which added 9.4% of the overall manufacturing number.

On the local bourse, significant gains were made by Delta Property Fund Ltd [JSE:DLT] which gained 6.5% on the day to trade at 217c. Steinhoff International [JSE:SNH] , Kumba Iron Ore [JSE:KIO] and ArcelorMittal [JSE:ACL] 4.38%, 3.7% and 3.70% respectively.

The worst performing shares on the day were Accelerate Property Fund Ltd [JSE:APF], which eased 4.86% to trade at 33c at the close of business. Capital and Counties [JSE:CCO], the dual listed property concern eased 3.11% as Rand hedges retreated as the Rand steady itself against the world currencies.

The JSE All-Share index closed 0.49% firmer whilst the JSE Top-40 index gained 0.57%. The Resource index was firmer on the day gaining 1.45%, the Industrials gained 0.17% whilst the Financials shed 2.54%.

At 17.00 CAT, Palladium was 0.47% weaker to trade at $1380/Oz, Platinum was firmer recording gains of 1.07% to trade at $813.80/Oz, whilst Gold was 0.05% firmer at $1329.95/Oz.

Brent crude traded weaker on the day posting losses of 0.24% to trade at $62.14 per barrel at 17:00 CAT.

At the close of the local trading session today, the local unit was firmer against most of the crosses as the risk on trade continued to find support the Rand was trading at R14.67 against the USD, R16.61 to the Euro and R18.66 to the Pound Sterling.

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