JSE lifts after US data

Futures close out during the day distorted the market a bit resulting in a couple of stocks doing "some strange things"

 The JSE closed up on Thursday following US markets as key data came in better than expected.

A local trader said that the US had picked markets up with US jobless claims, indicating a firmer economy coming out, at their lowest levels in three-and-a-half years.


The futures close out during the day distorted the market a bit resulting in a couple of stocks doing "some strange things".



At 17:00 local time, the all share index was up 0.88% to 32,006.70 points, with platinums lifting 2.88% and resources capturing 1.15%. Gold stocks depreciated 0.16%. Financials strengthened 1.96%, banks secured 1.48% and industrials moved up 0.20%.



The rand was bid at R8.38/$ unchanged from the JSE's close on Wednesday. Gold traded at $1,576.22 a troy ounce from $1,603.80/oz at the JSE's previous close, while platinum was quoted at $1,417.50/oz, from $1,433.70/oz at the previous close.



Dow Jones Newswires reported that US stocks advanced in early trading after investors took heart from the fewest new weekly claims for unemployment benefits since May 2008.



The Dow Jones Industrial Average rose 1% at the time of the JSE's close.



A seasonally adjusted 366,000 workers filed initial jobless claims in the week ended December 10, the Labor Department said. Economists surveyed by Dow Jones Newswires had forecast claims would climb by 9,000 to 390,000. The figures were the latest indication that the weak jobs market is slowly building strength.



In addition, the four-week moving average of new jobless claims, closely watched by economists because it smooths out volatile weekly data, dropped last week to 387,750, which is the lowest level since July 2008.



European markets were broadly higher. Manufacturing activity in the euro zone contracted at a slower pace than expected in December, while Germany's preliminary December figures rose versus the previous month.



A successful Spanish bond auction also lifted investor spirits. The average yields on April 2020 and April 2021 bonds rose slightly from the previous auction, but the average yield on the January 2016 bond dropped by 1.25 percentage points to 4.023%.



The euro gained ground against the dollar, to trade slightly above $1.30 one day after hitting the lowest level in nearly a year.



higher to R377.



Among gold shares, Anglogold Ashanti was down R2.35 to R354.75.



In platinum stocks, Amplats acquired R12.20 or 2.35% to R532.22 and Impala Platinum secured R5.83 or 3.61% to R167.41.



Among other miners, Kumba Iron Ore took up R4.05 to R500 and ArcelorMittal jumped R5.74 or 9.53% to R66. The Gauteng North High Court ruled on Thursday that Sishen Iron Ore Company (SIOC) holds a 100% of the mining right over Sishen, the country's largest iron ore mine.



In industrials, British American Tobacco dipped four rand or 1.01% to R391 and Nampak shed 45 cents or 1.99% at R22.15.



Telkom rose a rand or 3.52% at R29.40.



In banks and financials, FirstRand gathered 59 cents or 2.93% at R20.76 and Nedbank elevated R1.44 or 1% at R144.80. A financial transaction to the value of R1bn between AECI and Nedbank Corporate Banking was announced on Thursday and AECI said it would boost its delivery of value-adding solutions to mining and manufacturing industries in SA, Southern Africa and selected international markets.



Old Mutual Plc climbed R1.71 or 11.77% to R16.24. Old Mutual announced on Thursday that it was to sell its Nordic business, Skandia Insurance Company, comprising Old Mutual's long-term savings and banking operations in Sweden, Denmark and Norway operating under the Skandia brand, to Skandia Liv for a gross cash consideration of SEK22,5bn, or £2,1bn.



In retail, Mr Price surrendered R2.12 or 2.58% to R80.05 and Spar lost R2.43 or 2.23% to R106.57.



Construction stock Basil Read Holdings left behind 35 cents or 2.44% at R14.



Media Group Naspers declined R3.45 or 0.99% to R343.60.



I-NET BRIDGE