JOHANNESBURG - Domestic stocks ended slightly higher yesterday, with traders citing opportunistic buying following sharp declines in the previous week on worries about a US-led global trade war, while the rand benefited from a weaker dollar.
At 5pm, the rand bid at R11.8913 to the dollar, 10.45cents firmer than at the same time on Friday, recovering as signs of improvement in the economy lured back bulls who fled risky assets fearing a global trade war.
The JSE all share index closed 0.29percent up to 57912.4 points, while the Top40 index climbed 0.39percent to 51021.75 points.
“We’re seeing a bounce in some sectors and some stocks due to the fact that they’ve been heavily oversold,” said BP Bernstein trader Vasili Girasis. “This could see opportunistic buying coming in.”
One of those oversold stocks, which topped the bourse, was global retailer Steinhoff International Holdings, rising 7.3percent to R4.41.
Naspers also recovered from a decline on Friday to end up 1.93percent to R3314.32.
Among the decliners, the country’s biggest consumer foods maker, Tiger Brands hit a three-month low after it recalled products produced by its Enterprise unit after the government traced the source of a listeria outbreak that has killed about 180 people to its manufacturing facility.
Tiger Brands tumbled 7.44percent to R393.38.
The rand tumbled more than 3percent last week to its softest in two weeks, crossing the crucial 12/dollar mark, as emerging market currencies globally slumped following signs of interest rate hikes by the US Federal Reserve and President Donald Trump’s tariff plan on steel.
Yesterday, however, optimism toward the rand returned after a survey of private-sector activity expanded for the first time in seven months in February as political uncertainty eased.
Traders said the rand was at a technical crossroads, with short term gauges indicating some further losses but that the long term case still favouring gains.
“For the rand to appreciate further there needs to be a renewed positive local impetus in our opinion,” analysts at Nedbank said in a note.
Bonds were flat with the yield on the 2026 paper at 8.205percent.