JSE pushes higher in line with world stocks

The JSE remained in positive territory at lunchtime on Friday‚ tracking the upward momentum in global markets.

Banks were having a particularly strong session‚ with analysts linking the rally to a possible cut in interest rates by the Reserve Bank on Thursday.

“I’m not so sure if the Bank will follow through and cut rates on Thursday‚ given the renewed volatility in the rand‚” Afrifocus Securities portfolio manager Ferdi Heyneke said.

Pulling on the downside were resources‚ which reeled from a sharp retreat in commodity prices over the past week‚ as the dollar recovered.

Shortly after midday the all share was up 0.67% to 56‚015.70 points‚ helped in part by some larger industrial stocks‚ including Richemont‚ which hit an intraday record high.

Bidvest and Naspers were also well supported in the industrial sector‚ while Netcare was lower.

The global backdrop was supportive of the local share market‚ from Asia‚ to Europe‚ where leading stock indices were all higher by midday.

The outcome of the US Federal Reserve’s policy meeting late on Wednesday could give direction to global markets. The world’s most influential central bank will provide forecasts on interest rates.

“I’m not so sure if the Bank will follow through and cut rates on Thursday‚ given the renewed volatility in the rand‚” Afrifocus Securities portfolio manager Ferdi Heyneke said.

Among individual stocks on the JSE‚ Richemont was up 1.7% to R121.53‚ Bidvest 3.45% to R166.84 and Naspers 1.18% to R2‚958.50. Netcare‚ however‚ shed 1.81% to R22.82.

Standard Bank added 2.93% to R161.41‚ Barclay’s Africa 2.72% to R139.37‚ FirstRand 3.03% to R54.48 and Nedbank 2.01% to R204.72.

Investment group PSG was up 2.27% to R239.68‚ but Reinet Investments shed 2.32% to R28.18‚ after gaining 4.72% last week.

Discovery leapt 3.84% to R147.45‚ after earlier reporting a 20% increase in full-year diluted headline earnings per share‚ to 682.5c. Sanlam was up 1.89% to R68.35.

AngloGold Ashanti was off 2.02% to R128.80‚ and Anglo American Platinum 2.12% to R339.15.

By: Andries Mahlangu – BusinessLIVE

Leave a Reply