JSE opens marginally higher as market reacts to tepid GDP data

The JSE all share opened marginally firmer on Tuesday after another record Dow close and as Asian markets recorded gains in early morning trade.

Statistics SA said the economy grew by a paltry 0.2% in the second quarter on an annual basis from 3.3% in the second‚ beating some economists’ predictions of a contraction‚ but still reflecting a moribund economy.

The Dow Jones industrial average closed 0.24% higher at 19‚216.24 points on Monday in broad-based gains‚ led by financials and information technology companies.

The Nikkei 225 was up 0.47% and the Hang Seng added 0.62%. Brent crude lifted 0.85% to $54.63 a barrel.

At 9.30am‚ the all share was up 0.16% at 49‚791.40 points and the blue-chip top 40 was flat (+0.08%). Banks added 0.74%‚ platinums 0.49%‚ the gold index 0.43% and the SAP property index 0.32%. Food and drug retailers dropped 0.34%.

“The GDP number only confirmed that SA’s growth was anaemic at best and measures should be fast-tracked to accelerate growth to take advantage of the reprieve that SA got from the rating agencies‚” said TreasuryOne dealer Andre Botha.

Glencore was a firm favourite among mining stocks‚ gaining 2.38% to R51.16.

British American Tobacco was down 0.97% to R757.99.

Among banks‚ Capitec gained 1.20% to R649.98 and FirstRand added 0.96% to R51.65.

Old Mutual lost 0.61% to R32.60 but Liberty Holdings added 0.92% to R110.23.

Among property stocks‚ Hyprop rose 1.74% to R113.54. New Europe Property Investments softened 0.66% to R151.52‚ but Rockcastle added 2.54% to R35.89.

Sappi was down 0.85% to R82.03.

Transaction Capital added 1.36% to R14.90.

Brait rose marginally by 0.35% to R85.64.




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