Share

Equities rally as US-Sino trade talks progress

Equity markets continued to rally on the back of US-Sino trade talks, which could see an easing of trade hostilities between the two largest economies in the world. 

The S&P 500 advanced to make new all-time highs as new hope for significant progress in trade talks. This news has also increased forecasts of a potential Federal Reserve rate cut before the end of the year.

The Brexit conundrum continues as Boris Johnson pushes for an election in the UK before the end of the year as the Prime Minister struggles to get enough votes to pass his bill through the house of commons.

Asian markets were firmer on the day as the Hang Seng and Shanghai indices gained 0.84% and 0.85% respectively, the Nikkei 225 gained 0.3% whilst the ASX 200 advanced 0.02% respectively. Positive news out of US-Sino talks gave the markets good cheer as US markets continued to advance to make new all-time highs.

South Africa’s energy and chemical giant Sasol [JSE:SOL], released their results this morning after a delay which had been precipitated by an investigation into cost overruns at their Lake Charles chemical project (LCCP) in Louisiana. 

The results of the audit highlighted significant deficiencies in the LCCP management team, which resulted in the axing of the joint CEOs Stephen Cornell and Bongani Nqwaba. The incumbents would be replaced by Fleetwood Grobler with effect from 1 November 2019. Sasol will fail to pay a final dividend for this financial year, the first time the organisation has failed to pay a final dividend. The share price rallied on the announcement of the new CEO as the market sees this as a new start for the organisation, the share closed the day up 11.78% to trade at 29500c.

Significant gains were recorded by gains were recorded by Royal Bafokeng Platinum [JSE:RBP],  Discovery [JSE:DSY],  MultiChoice [JSE:MCG] and Pepkor [JSE:pph]  which gained 4.52%, 3.54%, 3.47% and 3.43% respectively.  

The largest losses on the day were sustained by Nampak [JSE:NPK], AngloGold Ashanti [JSE:ANG],  and Invicta [JSE:IVT], which shed 7.71, 6.86% and 6.18% respectively. The gold stocks were under pressure on the day as the underlying bullion price retreated below the psychological $1500/ ounce level.

The JSE All-Share index closed 1.32% firmer whilst the JSE Top-40 index advanced 1.35%. The Financials index also gained territory on the day adding 1.5% on the day. The Industrial and Resource indices were firmer as the industrials gained 0.98% whilst the resources gained 1.51% respectively.

The local unit was firmer on Monday ahead of the Mid-term Budget release and Moody’s rating agencies rating announcement later in the week. The Rand was trading at R14.55 to the dollar, R16.12 to the Euro and R18.72 to the British Pound.

Brent crude was weaker on the day to trade at $61.39 per barrel. The commodity opened the session weaker on the back of weak Chinese industrial data, a potential sign that the Chinese economy might be slowing down.  Gold was trading at $1491 at the time of writing easing off session highs of $1506.

Fin24 2810192

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders