Money SA economy
The JSE made broad strong gains on Tuesday on expectations of a rate cut and Alcoa's better-than-expected financial results which sparked a rally on Wall Street on Monday.
The JSE all share index rallied 1.12%, with resources 1.00% stronger. Platinum miners gained 1.46%, and gold miners rose 0.53%. Banks climbed 1.89%, financials added 1.41% and industrials were up 1.08%. Gold was quoted at $1,214.49/oz from $1,198.41/oz at the JSE's previous close, while platinum was at $1,524.00/oz from $1,520.50/oz before.
A trader said the local market firmed on the back of Monday's rally on Wall Street, which benefited from Alcoa's better than expected financial results. Another trader said local investors were pricing in a cut in the repo rate.
The latter trader said there was no news flow to justify the big jump in share prices, noting that investors could be hunting for bargains.
Dow Jones Newswires reported that investors poured into US stocks on Tuesday, as encouraging earnings reports sent the Dow Jones Industrial Average climbing for a sixth straight session.
Better-than-expected earnings from aluminum giant Alcoa and railroad operator CSX lifted expectations for corporate strength in the second quarter and boosted materials and industrial stocks.
On the JSE, Anglo American Plc gained R3.49 or 1.27% to R278.87, BHP Billiton pocketed R1.56 to R212.01 and Sasol was up R3.50 or 1.25% to R283.50.
