Money SA economy
The JSE closed firmly in the black on Monday boosted by a decision from Swiss bank UBS, to raise its recommendation on South African equities to 'overweight' from 'neutral'.
The JSE all share index finished 1.98% firmer, with resources 1.31% better off, and platinum miners 4.64% higher. Gold miners added 0.68%. Banks added 3.25%, financials gained 2.23%, and industrials were 2.52% stronger.
Gold was quoted at US$1,187.72/oz a troy ounce from US$1,178.03/oz at the JSE's last close. Platinum was at $1,529/oz from $1,497.50/oz at the JSE's last close.
A local equities trader said: "Strength on the JSE today is on the back of an upgrade by UBS on South African equities to 'overweight' from 'neutral'. The bank forecast a solid recovery for South Africa in the global economy. We have seen a lot of short covering as a result.
Dow Jones newswires reports that financials led US stocks lower on Monday as a Spanish bank bailout spurred concerns over the health of European banks and questions lingered over the final shape of the US financial regulatory overhaul.
Investors' avoidance of risk was in evidence. The US dollar rose against a weakening euro and demand climbed for safer US Treasurys. The price of the 10-year note climbed to push yield down to 3.21%. The U.S. Dollar Index, which tracks the US currency against a basket of six others, jumped 1.2%.
