JSE opens higher as banks and food retailers show gains

The JSE opened firmer on Friday as banks and food retailers gained on a higher Dow close on Thursday.

The Dow closed 0.64% firmer. Asian markets were up on Friday morning; the Nikkei 225 added 1.1% after Thursday’s Japan’s Mountain Day on Thursday. The Hang Seng was 0.91% firmer.

At 9.31am‚ the all share was up 0.99% to 52‚838.20 and the blue-chip top 40 added 1.11%. Banks rose 1.43% and food and drug retailers added 1.42%. Resources climbed 1.30% and financials were up 1.10%. General retailers added 0.94%. The gold index shed 0.93%.

The platinum spot price was up 0.62% to $1‚143/oz but gold was flat at $1‚339.45. Brent oil added 0.20% to $46 a barrel.

US equities gave a strong performance on Thursday and Asian markets were trading mostly higher on Friday.

Momentum SP Reid analysts said investors were choosing to focus on the upbeat momentum from US markets and a pick-up in global crude oil prices rather than recent Chinese data that missed expectations.

The analysts said risk-on sentiment was likely to support equity markets as the US Federal Reserve was not expected to hike interest rates until after the US presidential election.

Early morning movers on the JSE included Anglo American gaining 1.67% to R154.08 and Sasol firming 2.28% to R385.94 on the higher oil price and some rand weakness.

Kumba Iron Ore lifted 3.47% to R148.99.

SABMiller added 1.33% to R760.02.

Among banks‚ Nedbank jumped 3.15% to R222.28 and Barclays Africa added 1.63% to R164.17.

Among financials‚ Old Mutual recovered 1.26% to R37.66 after shedding 5% on Thursday on disappointing interim results.

Massmart Holdings was 1.96% higher at R155.39 and Shoprite firmed 1.31% to R209.71.

Among property stocks‚ New Europe Property Investments rose 0.16% to R160.79 on results delivered earlier in the week. Accelerate rocketed 8.73% to R6.60.

Mondi plc rose 1.35% to R280.60.

Diamond producer Trans Hex was up 2.56% to R4 on retail magnate Christo Wiese’s takeover offer of R3.94 per share announced on Thursday.

— TMG Digital/BDlive

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