Money SA economy
The JSE ended well in positive territory on Monday, snapping a four-day losing streak as news of HSBC's proposed acquisition of Nedbank lifted the local bourse.
The JSE all share index was up 1.38%, with resources gaining 1.14% and platinum stocks rising 1.85%. But gold miners lost 0.19%. Banks climbed 2.14%, financial counters firmed 1.71% and industrials added 1.44%. Gold was quoted at $1,221.93/oz from $1,226.03/oz at the JSE's previous close, while platinum was at $1,506.50/oz from $1,516.00/oz before.
An equity dealer said the domestic shares bounced on mergers and acquisitions activity, involving BHP Billiton and Nedbank. The dealer said a combination of short covering and bargain-hunting also helped support the market.
Dow Jones Newswires reported that US stocks rose on Monday as investors were encouraged by another round of acquisition offers, including one from Hewlett-Packard, that came on the back of a big week in deal activity.
The Dow Jones Industrial Average climbed 63 points, or 0.6%, to 10276, in early trading, lifted by market excitement over another spate of deal announcements and rumours.
At a time when economic data have been disappointing, the unexpected pop in deals is giving investors hope that US public companies are finally getting confident enough to start putting their $2.03 trillion in cash and short-term investments to work.
