JSE climbs as global markets rally

The JSE extended its gains by midday on Wednesday following the rally in world markets that was driven by a strong performance on Wall Street overnight.

Wall Street surged on news that the United States Federal Reserve had cut interest rates by 50 basis points, creating a positive sentiment for investors for bargain-hunting.

The Dow rose 2,51% overnight to 13 739,39 points, while the Nasdaq gained 2,71% to 2 651,66 points and the S&P 500 closed 2,92% higher at 1 519,78 points.

In the United Kingdom, the FTSE 100 was trading 1,94% higher at midday South African time.

“We are still strong following a bold move by the Fed [US Federal Reserve Bank] to cut interest rates. However, I don’t think the problem is sorted out, even though it has taken a lot of worries out of the market,” said a local equities trader.

He added that the dollar was weaker because of the Fed cut, which created demand for the metals, which was pushing interest into the gold shares.

“We should remain on an upward trend for the next few days,” concluded the trader.

By 12pm, the JSE’s all-share index had collected 2,83% as resources advanced 4,29%. The gold- and platinum-mining index shot up 3,11% and 3,15% respectively. Financials were up 2,02% and banks added 1,61%. Industrials were 1,51% higher.

The rand was bid at 7,08 to the US dollar from 7,16 when the JSE closed on Tuesday, while gold was quoted at $723,50 a troy ounce from $715,25 at the JSE’s last close.

 

At midday on the JSE, resource stock BHP Billiton progressed 5,66%, or R12,29, to R229,50, while Anglo American gained R19,50, or 4,7%, to R434 and Sasol advanced R9, or 2,91%, to R318.

However, Kumba Iron Ore lost R4,50, or 1,91%, to R230,50.

Among gold miners, AngloGold Ashanti climbed R6,16, or 1,9%, to R331,15 and Goldfields was up R5,25, or 4,4%, to R124,65. Harmony firmed R2,01, or 2,5%, to R82,50.

Platinum stock Impala Platinum lifted 4,07%, or R8,56, to R218,76, Lonmin added 2,52%, or R11,48, to R466,38 and Anglo Platinum was 2,2%, or R21,50 higher, at R1 000,50. Aquarius Platinum collected 2,23%, or R5, to R229.

In construction and building materials, Wilson Bayley Holmes-Ovcon rose 1,53%, or R1,80, to R119,80, and Basil Read increased 19 cents, to R31,50.

Business support services group Bidvest edged up 1,5%, or R2 to R135.

It said on Wednesday that the financial losses suffered as a result of a blaze that broke out at one of its Durban chemical storage facilities on Tuesday night are not expected to be significant. It said that approximately 3% of its Durban storage capacity had been damaged, the replacement of which was comprehensively insured.

Media stock Naspers-N gained 2,89%, or R5, to R178, but Primedia was unchanged from its close of R27.

Financial stock Investec was up R6,22%, or R4,40, to R76,90, and Investec added 4,45%, or R3,23, to R75,75.—I-Net Bridge

 

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