Money SA economy
The JSE posted solid gains across the board on Thursday, with positive US economic growth figures and encouraging US jobs data providing impetus to the local market. All indices, except the gold index, gained over 1%.
The market will closely watch what US Federal Reserve chairman Ben Bernanke will say later today given the weakness of the dollar, which has helped drive the rand higher, Warren Saevitzon, portfolio manager at Imara SP Reid, said.
By 5pm local time the JSE all share index was up 1.33%, with industrials gaining 1.58%, banks picking up 1.45% and financials adding 1.14%. Gold miners rose 0.29%, resources garnered 1.15% and platinum miners edged up 1.32%. Gold was quoted at USD1,301.23 a troy ounce from USD1,309.93/oz at the JSE's previous close, while platinum was at USD1,649.00/oz from USD1,650.00/oz at the JSE's previous close.
Saevitzon said the latest US economic indicators, the better than expected GDP and jobless data, provided an extra boost to the local market as economic growth in the US indicated that growth in the world's largest economy is stabilising, which is good for the market.
"It has been a good day," Saevitzon said, describing the mood on the JSE, which had a poor start but spent most of the day in positive territory.
He said the World Cup effect and the fact that the South African government has not gotten itself into debt, which is troubling some European countries, boosted sentiment.
An analyst said investors focused on South Africa's economic fundamentals and stable financial system. "South Africa is seen as a gateway into Africa, attracting foreign companies such as HSBC and Wal-Mart," the analyst said.
Dow Jones Newswires reported that US stocks opened higher on the final day of the best September in 71 years, boosted by encouraging jobs data and a slightly higher revision of second-quarter US growth.
On the JSE, Anglo American climbed R5.25 or 1.89% to R283.25, BHP Billiton advanced R3.13 or 1.41% to R225.14, and Sasol added 38 cents to R312.88.
