Picture: JSE
Picture: JSE

THE JSE closed at its highest level so far this year on positive global sentiment following the US Federal Reserve’s stance on interest rates.

Trading on the JSE was volatile on the futures closeout for the first quarter of the year, while trading volumes were elevated.

Banks were higher following the Reserve Bank’s decision to increase the interest rate 25 basis points to 7%.

At 5pm the all share closed 0.96% higher at 53,190.60 points, the first close above 53,000 in 2016, and the blue-chip top 40 had risen 0.73%. Banks were up 5.38% and the gold index rose 4.96%. Platinums added 3.06% and financials firmed 2.27%. Resources gained 2.23% and property added 1.24%.

European markets were softer on renewed deflationary concerns, with eurozone consumer inflation expected to remain close to zero or in slightly negative territory in the coming months.

At the JSE’s close the FTSE 100 was flat (-0.04%) and the Paris CAC 40 had lost 0.92%. The Dax was down 1.39%. The Dow Jones industrial average opened 0.35% firmer.

Stanlib economist Kevin Lings said Fed chair Janet Yellen once again highlighted in her press briefing that they were somewhat concerned about the effect of global economic developments on the performance of the US economy.

He said the latest Federal open market committee (FOMC) statement from the Fed could be considered relatively dovish.

The weak global economic backdrop appeared to be having a larger than expected influence on the FOMC outlook for rates.

"Although we still expected the Fed to announce another two rates hikes in the second half of 2016, this could be delayed if the rest of the world economy weakened noticeably further and the dollar gained more ground," Mr Lings said.

The sentiment towards emerging markets had improved considerably since the beginning of the year. Capital Economics analysts said in a note released on Thursday that the risk of a systemic emerging markets financial crisis remained low.

Financial vulnerabilities across the emerging world were much smaller now than at the time of previous crises, Capital Economics said.

"As a result, the improvement in investor sentiment in recent weeks appeared to be justified," they said.

Among individual shares on the JSE, Anglo American jumped 6.89% to R119.95 and rival BHP Billiton lifted 3.15% to R182.17.

African Rainbow Minerals rose 5.11% to R86, with Kumba Iron Ore leaping 11.59% to R87.60.

Global beer giant Anheuser-Busch InBev dropped 3.38% to R1,808.61. The group earlier announced a €13.23bn notes issuance to pay for the SABMiller takeover transaction.

Sibanye was 10.77% up at R61.20 after the Competition Commission gave the green light for the takeover of Aquarius Platinum and some of the mines in the Amplats stable.

Impala Platinum lifted 7.18% to R47.62.

Among banks Barclays Africa rocketed 6.67% to R144.80, FirstRand rose 6.75% to R46.36 and Standard Bank firmed 4.07% to R125.

Niche financial group Sasfin closed 4.42% up at R54.30. The group said headline earnings per share (Heps) for the six months to December 31 2015 rose 31% to 334.72c compared with the year-earlier period.

Sanlam ended the day 4.36% up at R64.08.

Among property stocks Hyprop firmed 2.91% to R118.40.

Telkom jumped 6.43% to R56.80.