THE JSE all share index on Thursday shrugged off SA’s political controversies to close at the highest level so far this year. It was propped up by positive sentiment following the decision by the US Federal Reserve to keep interest rates unchanged.
Emerging markets rallied. The rand strengthened more than 3% and was R15.12/$ in the early evening. The Reserve Bank’s decision to increase the repo rate by 25 basis points to 7% had little effect. Trading was volatile following the day’s futures close-out for the first quarter.
The all share was more than 1.30% higher at midday, but retreated later on weaker industrials. Gold and banking shares shone.
The all share ended the day 0.96% higher at 53,190.60, the first closure above 53,000 this year. The all share has risen 4.9% this year. Its high was at 55,355.10 on April 24 last year. The spotgold price rose 0.05% to $1,262.98 at the close, up 18.9% so far this year, and the gold index has risen 107% this year.
TreasuryOne dealing head Wichard Cilliers said gold shares strengthened on the Fed decision. "The dovish sentiment had led to more fear about the global economy and a rush to safe-haven assets."
Nedbank CIB strategic research head Mohammed Nalla said the Fed was more dovish than expected as chairwoman Janet Yellen reiterated that risks to the global outlook were a key concern. "This proved to be supportive of risk appetite."
Federal Reserve. Picture: AFP PHOTO/KAREN BLEIER
THE JSE all share index on Thursday shrugged off SA’s political controversies to close at the highest level so far this year. It was propped up by positive sentiment following the decision by the US Federal Reserve to keep interest rates unchanged.
Emerging markets rallied. The rand strengthened more than 3% and was R15.12/$ in the early evening. The Reserve Bank’s decision to increase the repo rate by 25 basis points to 7% had little effect. Trading was volatile following the day’s futures close-out for the first quarter.
The all share was more than 1.30% higher at midday, but retreated later on weaker industrials. Gold and banking shares shone.
The all share ended the day 0.96% higher at 53,190.60, the first closure above 53,000 this year. The all share has risen 4.9% this year. Its high was at 55,355.10 on April 24 last year. The spotgold price rose 0.05% to $1,262.98 at the close, up 18.9% so far this year, and the gold index has risen 107% this year.
TreasuryOne dealing head Wichard Cilliers said gold shares strengthened on the Fed decision. "The dovish sentiment had led to more fear about the global economy and a rush to safe-haven assets."
Nedbank CIB strategic research head Mohammed Nalla said the Fed was more dovish than expected as chairwoman Janet Yellen reiterated that risks to the global outlook were a key concern. "This proved to be supportive of risk appetite."
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