OWN CORRESPONDENT, Johannesburg | Wednesday 6.45pm.
SOUTH AFRICAN shares recovered from Tuesday’s losses as concerns about emerging markets showed signs of easing.
Reinforcing the positive tone was the promising outlook on the Dow Jones and FTSE 100 index.
At 1600 local time (1400 GMT) close, the all-share index had gained 0.42%, the industrial index was 0.66% firmer and financials were 0.76% higher.
The resources index was down 0.13% and the all-gold index had weakened by 1.71%.
The release of the US June producer price inflation (PPI) data, falling by 0.1% on a seasonally adjusted basis in June, while retail prices rose by only 0.1% from an expected rise of 0.3% added to the market performance today.
The Dow Jones industrial average hit a best level of 11,209.2 points, but thereafter weakened on profit taking and was last seen at 11,135.8 points from a previous close of 11,175.0.
Meanwhile, the FTSE 100 index was 10.5 points higher from a previous close of 6,445.60 points.
Dealers expressed confidence on South African equities saying fundamentals were still intact, and were expecting a rally as the interest rate outlook points downwards.
They added that the benefits of the Old Mutual listing, which had not filtered through, are yet to be seen, especially in the retail sector.
Although the gold price remained under pressure trading at $254.60/oz from a New York close of $255.35/oz, some of the gold stocks came off their worst levels, while platinum stocks were seen creeping higher.