The JSE remained strong at midday on Friday with the overall market up 2% in line with firmer global markets and strong commodities prices.
Following the decision by the United States Federal Open Market Committee to increase interest rates, Wall Street surged more than 2% on Thursday, posting its biggest one-day point gain in more than three years.
AFX reports that a relief rally carried Wall Street sharply higher on Thursday after the Federal Reserve appeared to soften its stance on future interest-rate hikes, saying it would consider both the economy’s health and inflation as it formulates its policy. The Dow Jones industrial average rose more than 215 points, its biggest one-day point gain in more than three years.
The positive sentiment spilled over onto Asian markets on Friday morning, with both the Nikkei and Hang Seng closing 2,5% higher. European bourses were also strong.
By 11.55am, the all-share index was up 2,05%. Resources rose 1,67%, the platinum-mining index climbed 2,11% and the gold-mining index ticked 3,21% higher. Industrials advanced 2,34%, financials firmed 2,38% and the banks index was 3,25% better.
The firmer rand was being ignored by the JSE, traders said, with the market focusing instead on the global trend.
The rand was bid at 7,12 per dollar from 7,27 when the JSE closed on Thursday, while gold was quoted at $600,30 a troy ounce from $598,45/oz at the JSE’s last close. Platinum was last at $1 213/oz — up $12/oz from its overnight close.
Leading the JSE’s upside, global-resources group BHP Billiton was 2,38% or R3,22 stronger at R138,25, while Anglo American added R3,51, or 1,2%, to R290,50.
However, petrochemicals group Sasol was down R1,30 at R277,50.
Among gold counters, Gold Fields gained R5,57, or 3,6%, to R160,47 and AngloGold Ashanti added R11,75, or 3,6%, to R338. Harmony Gold jumped 2,28% or R2,45 to R110.
Impala Platinum improved 2,02% or R27 to R1 364 and AngloPlat jumped R16,50, or 2,28%, to R741,50.
Swiss-listed luxury goods group Richemont was up 78c at R32,02, while SABMiller rallied R2,97, or 2,36%, to R129.
Retailers were a feature, with Truworths up 6,9%, or R1,40 to R21,60, Edcon 4,64%, or R1,30 firmer at R29,30 and Foschini was 4,49%, or R2 better at R46,50.
JD Group advanced 4,61%, or R2,95 to R66,90 and Lewis collected 5,6%, or R2,50, to R47.
Cellular network operator MTN Group jumped 3,81% or R2 to R54,50, while Telkom was R1 better at R133.
Standard Bank was 4% or R3 stronger at R78, FirstRand firmed 2,67% or 44c to R16,95, Nedbank was 2,92% or R3,21 better at R113,20 and Absa added 2,94% or R2,84 to R99,60.
London-listed financial services group Old Mutual was R2,84, or 2,94%, firmer at R21,40. — I-Net Bridge