Money SA economy
The JSE held up well on Monday, closing higher despite wobbly global stocks and a strong rand, which tends to weigh on rand-hedge stocks and mining counters.
The local market cheered the Massmart news and played catch-up today as the exchange was closed for a public holiday on Friday, when world equities posted strong gains, Kevin Algeo, portfolio manager at Imara SP Reid, said.
By 5pm local time the JSE all share index was up 0.85%, with resources gaining 0.63%. But platinum miners shed 0.39% and gold miners fell 1.80%. Banks rallied 2.47%, industrials were up 0.72% and financials edged up 1.56%. Gold was quoted at US$1,296.20 a troy ounce from US$1,295.00/oz at the JSE's previous close, while platinum was at $1,630.50/oz from $1,640.20/oz at the JSE's close previously.
Algeo said the domestic bourse held up well despite weaker international equities and the strong rand.
He said news that Wal-Mart Stores (Walmart) had made an offer for the consumer goods distributor Massmart (MSM) was positive for retailers, especially. Dow Jones Newswires reported that US stocks opened slightly lower on Monday, as fresh concerns about the European banking system cooled investors' exuberance after four straight weeks of gains.
Kicking off the final week of the strongest September in 71 years, the Dow Jones Industrial Average slipped 13 points, or 0.1%, to 10847, in early trading.
Generating fresh concerns about the health of the European banking system, the euro weakened after Moody's Investor Service downgraded the debt of Anglo Irish Bank by three notches because the bank is expected to require further government support.
On the JSE, Anglo American gained R1.79 to R282.80, and Sasol rose R5.89 or 1.92% to R311.89.
