SARAH BULLEN, Johannesburg | Wednesday 12.30pm.
LOCAL stock rocketed on Wednesday morning as relief over global gains and a massive rally by Latin American markets spilled over into the Johannesburg Stock Exchange.
By midday the all share index had gained 2,46%, led up by a 4,32% rise in the financial index and a 3,47% gain in industrial stock.
Latin American markets, hard hit by the recent financial market turmoil, gained some 18% on Tuesday on news that the International Monetary Fund may provide up to $26-billion in credit relief. Exchange indices in Brazil and Argentina posted their biggest one-day gains since March 1995, while Mexico’s stock index had its biggest rally in a decade.
Asian markets also posted significant improvements overnight, with Japan, Hong Kong and Singapore all posting gains.
The JSE was also buoyed by futures-related trade ahead of Friday’s futures close-out. The only drain on the local market seems to be gold stock, with the index losing 30 points (2,93%) in early trade. Gold shares, a traditional rand hedge, found the stronger rand at R6,12 to the dollar working against them.