South African stocks closed higher on Thursday, with petrochemical company Sasol rising on stronger oil prices aided by a weaker dollar after soft US employment data was released.
Sasol recovered from the previous session gaining 2.33% to R447.89 as oil prices edged higher when the US dollar slipped after weaker-than-expected US non-farm payrolls data.
“What the market is thinking is that there is less likelihood that they are going to put interest rates up. It might be pushed back because employment doesn’t look as strong as the market was expecting,” said Greg Davies of Cratos Capital.
Resource heavyweights BHP Billiton were up 1.69% to R243.74 and Anglo American up 1.12% to R175.74.
Anglo American rose amid reports that it could cut up to 20% of its staff around the world in an effort to keep shareholders and respond to a commodity price decline.
The Top 40 Index climbed 0.68% to 46,627 and the All Share Index gained 0.63% to close at 52,215.
Gold Company, Sibanye Gold recovered losses from an earlier four-week low spot gold price up 2.24% to R19.19.
“Resources are looking stronger, but it’s actually the dollar that is a little bit weaker,” said Greg Davies of Cratos Capital.
Gold minerss AngloGold Ashanti and Harmony Gold remained in the red, slipping 1.11% and 1.53% respectively.
Steelmaker ArcelorMittal South Africa lost nearly 7% on Thursday. The South African unit of the world’s largest producer of steel is trading at its lowest levels in more than a decade.
Around 172.8 million shares changed hands on the JSE, lower than last year’s daily average of 183 million.