Money SA economy
The JSE rallied strongly on Tuesday as investors gained confidence following a strong start in the US markets and expectations of positive earnings results in the US.
At its close, the JSE all share index surged 2.07%, with resources up 2.20% and platinum miners 1.13% higher. Gold miners lost 1.92%. Banks were up 3.14%, industrials gained 1.78%, and financials rose 2.39%. Gold was quoted at $1 192.88/oz from at $1 206.25/oz at the JSE's previous close, while platinum was at $1 507.50/oz from $1 507.50/oz at the JSE's last close.
Kevin Algeo, portfolio manager at Imara S P Reid, said the Dow Jones Industrial average opened 150 points higher, boosting sentiment on the local bourse. Algeo said investors cheered upward revision of US quarterly earnings. The reporting period kicks of next week in the US. He said the weak spot gold price graded gold stocks lower.
Dow Jones Newswires reported that US stocks rose on Tuesday, as strong semiconductor sales and an encouraging forecast from Australia's central bank raised new hopes for stronger global demand.
On the JSE, Anglo surged R8.32 or 3.15% to R272.31, and Sasol edged up R5.40 or 1.96% to R281.60. BHP Billiton rose R8.03 or 4.09% to R204.58. The resources giant said the impact of the compromise resources tax was still uncertain.
