Money SA economy
The JSE edged up at the closing bell on Monday, signalling that investors had welcomed the outcome of the European bank stress tests.
Resurfacing rumours about the possible takeover of Nedbank also moved the local market, a portfolio manager said.
The JSE all share index rose 0.26%, as platinum miners climbed 0.68%. Bucking the positive trend, gold miners lost 0.87% and resources fell 0.02%. Banks strengthened 0.68%, financials gained 0.63% and industrials edged up 0.35%. Gold was quoted at $1 181.43/oz from $1 190.22/oz at the JSE's previous close, while platinum was at $1 546.50/oz from $1 542/oz before.
Kevin Algeo, portfolio manager at Imara S P Reid, said the market reacted well to the results of the stress tests, despite reservations about the criteria used in the tests. The tests found that only seven out of 91 European banks would have to raise new capital.
Algeo said rumours that Nedbank is an acquisition target also lifted banking stocks and prompted the rand to strengthen.
Dow Jones newswires reports that the industrial sector led US stocks higher on Monday following a bigger-than-expected jump in new-home sales and a rosy outlook from FedEx.
