JSE closes higher as risk assets recover on US Fed’s dovish tone

The euro firmed above $1.1650 on Powell’s comments, the strongest level for the bloc’s currency this month, boosting the rand to R14.1407 to the dollar, from R14.2514, by the JSE’s close.

The euro also found support from Germany’s Ifo report, which showed stronger-than-expected business confidence, despite the continuing trade war over tariffs with the US. The climate subindex jumped to 103.8 points in August from 101.7 in July, beating a forecast of 101.9. It was the first increase since November and its highest level since February.

Mining stocks gained on the weaker dollar and as Brent crude rose 0.7% to $76.10 a barrel. Gold stocks were supported by a firmer metal price, which was last seen at $1,209 an ounce.

Despite paring some of its intra-day gains Naspers reached its best level in five months, closing 0.9% higher at R3,569.99.

Resilient slipped 1.36% to R57.48 and Fortress B 1.19% to R15.71. Fortress B confirmed in a statement on Monday it was considering a request from several institutional investors to investigate allegations made against the company, its directors and shareholders.

The all share closed 1.46% higher at 59,655.60 points and the top 40 added 1.54%. Banks rose 3.2%, the gold index 2.76%, platinums 2.7%, resources 2.04%, food and drug retailers 1.96%, financials 1.93%, general retailers 1.3% and industrials 0.98%.

Anglo American gained 2.85% to R296.22 and Sasol 1.56% to R555.51.

Nedbank leapt 3.64% to R280.22 and Absa 3.53% to R166.43.

MMI Holdings recovered 1.89% to R16.70 after losing 1.27% on Friday following notice that its headline earnings per share (HEPS) were expected to decrease by between 15% and 25% for the year to end-June.

Among retailers Woolworths added 2.6% to R51.30 and Massmart 1.95% to R115.88. Both reported results last week.

Education provider Advtech dropped 1.3% to R15.15 after reporting interim revenue to end-June rose by 13% to R2.3bn.