Money SA economy
The JSE posted modest gains on Friday as risk appetite returned, with foreign investors buying local equities again encouraged by upbeat global economic data.
But with US markets closing for the Labour Day holiday on Monday, investors weren't as committed as usual as was reflected in the light trading volumes today, an equity trader said.
By 5pm local time the JSE all share index rose 0.37%, with resources 0.39% higher. But platinum miners lost 0.66% and gold miners fell 0.39%. Banks added 0.26%, financials were up 0.26%, and industrials gained 0.39%. Gold was quoted at USD1 244.52 a troy ounce from USD1 251.72/oz at the JSE's previous close, while platinum was at USD1 550.00/oz from USD1 551.50/oz before.
The equity trader said more foreign money was flowing into South African shares as offshore investors felt more reassured by continuous positive global economic data, which was capped on Friday by better than expected US nonfarm payrolls.
The equity trader said there was a change in sentiment, driven by an easing in fears of a double-dip recession and dramatically improving economic indicators.
Another trader agreed, saying risk appetite was returning, as signalled by stronger rand and falling gold stocks.
Dow Jones Newswires reports that US stocks climbed on Friday after slower job losses in August encouraged investors still struggling to figure out the economy's trajectory.
Nonfarm payrolls fell 54 000 last month, matching the level of revised losses recorded the previous month, the US Labor Department said on Friday. Economists had predicted a drop of 110 000. The unemployment rate, calculated using a separate household survey, edged up to 9.6%, as expected, after holding at 9.5% for previous two months.
