JSE opens higher as Fed comments boost global stocks

The JSE opened higher, in line with most global markets after a US Federal Reserve official hinted at the possibility of monetary policy easing in the US.  

New York Fed president John Williams said on Thursday that it would be better for the Fed to take “preventative measures than to wait for disaster to unfold” amid mounting expectations that the Fed will cut the interest rate at their next meeting at the end of the month. 

Earlier, the Shanghai Composite had gained 0.79% and Hong Kong’s Hang Seng 1.15% while Japan’s Nikkei 225 was down 1.97%. In Europe, the FTSE 100 had gained 0.57%, France’s CAC 40 0.8% and Germany’s DAX 30 0.75%. 

At 10.15am, the JSE all share had gained 1.11% to 58,513.50 points and the top 40 1.17%. Gold miners climbed 3.33% and resources 1.47%. 

Pioneer Foods jumped 28% to R99.88 – reaching its best level in 10 months in intra-day trade – after the company announced that US beverage company PepsiCo has made an offer to acquire Pioneer Foods in a deal worth R25.4bn. Pioneer Foods shareholder Zeder jumped 20% to R4.77. 

Merafe had gained 1.69% to R1.20 despite the the resources company saying on Friday that it expects basic earnings per share and headline earnings per share of between R5.92  and R7.24 for the six months ended June, a decrease of between 57% and 65% from the previous period. 

AB InBev climbed 5.21% to R1,299 after it said on Friday that it would sell off its Australia-based Carlton and United Breweries to Japanese company Asahi Group Holding.

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Source: businesslive.co.za