THE JSE started the week on a high note on Monday as confidence returned to global markets ahead of expected further stimulus announcements by central banks this week.
Gold and platinum shares were lower, but industrials were the gainers on the day.
The European Central Bank (ECB) boosted its stimulus measures last week.
Investors were awaiting a decision by the Bank of Japan (BoJ) after the end of its two-day policy meeting on Tuesday, followed by the US Federal Reserve’s policy decision on Wednesday,
The South African Reserve Bank will announce its interest-rate decision on Thursday.
The FTSE was up 0.54% at the JSE’s close and the Paris CAC 40 had gained 0.21%. The DAX ended 1.47% higher, while the Dow Jones was flat (-0.09%).
At 5pm the all share had closed 1.41% higher at 52,471.70 points and the blue-chip top 40 had gained 1.74%. Industrials had firmed 1.57% and resources 1.42%. Financials were up 1.11%. Platinums had lost 2.43%, the gold index 2.26% and banks 0.50%.
It was going to be an important week for SA and many other emerging markets that had experienced a reasonably decent recovery from the financial market volatility at the start of the year, Bidvest Bank analysts said.
"Another hike by the Fed, which could be announced on Wednesday, would raise the pressure on the Reserve Bank to follow suit," it said.
The JSE all share had been supported by a rally among mining stocks since the beginning of the year, but uncertainty remained about how sustainable the rally was. The all share is up 3.51% so far this year, and the gold index has jumped 92%. Platinum has firmed 83%.
Stanlib retail investment director Paul Hansen said there was no easy answer to whether mining shares were starting a new bull market, or whether this was simply a bounce that was likely to peter out.
International research had found the rally to be more of a bounce in a down trend, rather than a sustained recovery. "However, shares are known to be leading indicators pointing to a yet unseen potential turnaround in global economies."
When shares such as Anglo American fall almost 90%, it might point to a reality where sellers are outnumbered, Mr Hansen said.
Among individual shares on the JSE, Glencore rallied 9.38% to R33.22. Anglo American was 9.15% higher at R122.
Global luxury goods company Richemont rose 2.93% to R105.76.
Among gold stocks, Harmony Gold surged 6.02% to R54.07, though Sibanye dropped 3.59% to R54.
Lonmin Platinum leapt 9.77% to R36.50.
Among banks, Standard Bank decreased 1.22% to R120.51.
Alexander Forbes Group fell 4.32% to R6.80, while
Lewis Group slid 6.95% to R51.18.
Naspers rose 2.91% to R1,995.39 after reports that Chinese internet penetration had surpassed 50% for the first time. China’s retail e-commerce is now easily the largest in the world, and almost double the size of that of the US.
Naspers owns 34% of the Chinese internet company Tencent.