The JSE Securities Exchange South Africa (JSE) looks set to open on a stronger note on Thursday despite a firmer rand. At 0851, all share index futures (Alsis) were up 62 points after 470 contracts had traded. Industrial index futures (Indis) were yet to trade.
The rand was trading at 6,90 to the dollar steady from 6,91 when the JSE closed on Wednesday, while gold was quoted at $385,15 an ounce stronger from $384,30/oz at the JSE’s last close.
“I think we should expect a small correction on the upside, and if the rand remains at the 6,80s or 6,90s range then some positive performance should be displayed by the JSE. The futures have picked up and so the JSE should follow,” a futures trader said.
Dow Jones Newswires reports that US stocks rose sharply, aided by Cisco Systems, which moved closer to settling a dispute, and International Business Machines, which is engaging in a big accord.
The Dow Jones Industrial Average rose 194,14, or 2,09%, to 9,469.20, the Nasdaq Composite Index advanced 45,31, or 2,54%, to 1832,25 while the Standard & Poor’s 500 Index added 22,25, or 2,23%, to 1018,22.
It was the largest point and percentage gain for the Dow Jones Industrial Average and the S&P 500 since June 16 and the biggest percentage and point gain for the Nasdaq Composite Index since July 7.
In Tokyo on Thursday morning, the Nikkei 225 closed up 2,2% at 10,593.53 on heavy speculative buying in banks while brokerages followed Wall Street rally.
Players are still cautious on high tech exporters ahead of 1H earnings to be announced later this month. Players are monitoring USD/JPY closely and still buying domestic issues in retail, telecom and transport sectors. – I-Net Bridge