JSE at fresh high as SA awaits Gordhan's budget speech

Relief on the JSE rallied after the US announced a lift on the debt  ceiling last week. (M&G)

Relief on the JSE rallied after the US announced a lift on the debt ceiling last week. (M&G)

The JSE was at a fresh intraday high in early-morning trade on Monday as resources and industrial counters pushed the bourse into record territory due to increased appetite for riskier assets.

The relief rally continued after US politicians decided to reopen the US federal government and lift the debt ceiling last week. Stronger third-quarter Chinese gross domestic product (GDP) data last week also contributed to improved global sentiment.

At 9.44am‚ the all share index was trading 0.50% firmer at 44 914.88 points and the blue-chip top 40 index up 0.57%.

The resources index led the gainers‚ adding 0.88%‚ industrials gained 0.56% but banks gave back 0.51%.

This week’s main focus will be on the medium-term budget policy statement due to be delivered by the Finance Minister Pravin Gordhan on Wednesday at 2pm.

Against a backdrop of weaker than expected growth this year‚ markets would be looking to see the Treasury’s new growth projections and how they would affect the fiscal targets that were stated in the February budget‚ Barclays Research said in a morning note.

'Headline CPI inflation'
​"The September CPI [consumer price index] figures are also due for release on Wednesday. Internationally‚ the long-awaited US nonfarm payrolls are scheduled to be released on Tuesday following the reopening of government last week‚" the bank said.

"Although headline CPI inflation has gathered a lot of speed in recent months‚ we think the 6.4% year-on-year print in August was the peak and that the trend should be downward‚ at least until the end of the year‚" it said.

Among individual counters on the JSE‚ Anglo American gained 1.01% to R244.68 and rival BHP Billiton lifted 1.32% to R298.27.

Compagnie Richemont garnered 1.14% to R101.63 amid a softer rand.

Bankers Standard Bank relinquished 0.68% to R126.14 and RMB Holdings gave back 0.61% to R48.60.
– I-Net Bridge

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