JSE climbs 1% amid upbeat global mood

The JSE pushed higher on Monday morning, helped by a positive global and local developments.

The rand has rallied a little after Moody’s Investors Service opted not to review SA’s credit rating, with commentary now expected only after the May 8 national polls.

This has proved beneficial for banks, which had gained more than 2% on Monday morning.

Global sentiment was also risk on, lifted by a positive purchasing managers’ index reading. This helped bolster the oil price, to the benefit of local diversified miners.

At 10am the all share was up 1.13% to 57,102.05 points and the top 40 1.24%. Banks were up 1.8% and industrials 1.03%. Platinums had fallen 1.03% and gold miners 1.65%.

At the same time gold was down 0.21% at $1,289.63/oz and platinum 0.25% to $849.11. Brent crude was 1.26% higher at $68.44 a barrel.

Diversified miner Glencore was up 1.43% to R60.85 and BHP 1.87% to R353.93.

Standard Bank was up 2.3% to R189.49, Absa 2.33% to R155.65 and Nedbank 2.31% to R257.05.

Vodacom had added 3.28% to R115.09.

Global focus remains on Brexit, with another series of votes scheduled by the UK parliament for this week. There is still no clarity on what will happen next, and a range of options remains, including a second referendum or even a general election.

Some focus is also on the US-China trade war, with Chinese officials heading to Washington to continue last week’s talks.

There is also a series of local and international data to look forward to, including US jobs numbers on Friday.

SA motorists are also set for their biggest petrol price hike in four years on Wednesday, with the price of petrol set to rise R1.31/l in Gauteng on Wednesday.

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