JSE firmer in line with global markets

The JSE was stronger at midday on Monday‚ taking its cue from stronger Asian and European markets after a positive close on Wall Street on Friday.

Markets traded stronger following Friday’s US nonfarm payroll data that came in weaker than expected‚ causing investors to believe the US Federal Reserve was unlikely to increase rates in September.

The US added 151‚000 jobs in August and not 180‚000 as investors expected.

Dow Jones Newswires reported that investors now saw a roughly 21% chance of a rate rise in September‚ according to Fed-funds futures tracked by CME Group‚ compared with a 24% chance the previous day.

Global trade is expected to be subdued on Monday as the US celebrates Labor Day.

In Asia‚ the Japanese Nikkei 225 closed 0.66% firmer‚ the Shanghai Composite lifted 0.15% and the Hong Kong Hang Seng added 1.65%.

Comments by Bank of Japan governor Haruhiko Kuroda‚ who alluded to more room for monetary easing‚ also helped support buying interest in Asia on Monday‚ the newswire said.

At 12.23pm the all share was 0.15% firmer at 53‚579‚79 points and the blue-chip top 40 added 0.18%.

Resources led the gains on the bourse‚ adding 1.34%‚ followed by gold miners rising 1.18%. Commodity stocks were buoyed by the uncertainty about the timing of a US rate increase.

General retailers fell 1.13% and financials dipped 0.32%.

TreasuryOne’s head of dealing‚ Wichard Cilliers‚ said Friday’s US jobs numbers had done little to settle the Fed debate‚ but a rate increase in September looked unlikely now and that had spurred interest in riskier assets in Asia.

December seemed to be the most likely meeting for a rate increase‚ he said.

Among individual shares on the JSE‚ Anglo American rose 1.12% to R158.90 and BHP Billiton added 1.68% to R193.90.

Kumba Iron Ore lifted 3.36% to R138.50.

Sasol gained 1.27% to R376.83 after the Brent crude price surged 3.64% to $48.295 a barrel in afternoon trade.

Gold Fields added 2.75% to R79.12 and Harmony added 2.96% to R56.32.

Retailer Mr Price was weaker‚ down 2.28% to R75.43 after a disappointing trading update released last week.

Santam retreated 1.09% to R218.60 and Sanlam gave back 0.92% to R63.80.

TMG Digital/BDlive


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