JSE rebounds as global stocks recover
The JSE was higher on Monday morning, tracking Asian markets, rebounding from last week’s global sell-off, which saw the local bourse end its fourth consecutive week of losses on Friday.
Asian stocks were lifted on Monday after China’s central bank announced a reform over the weekend to lower lending rates for companies. Global stocks recovered from last week’s losses, which were prompted by concern of a slowdown in the global economy.
“Risk appetite remains extremely fragile though, so more whipsawing this week would come as no surprise,” Oanda senior market analyst Craig Erlam said in a note.
Earlier, the Shanghai Composite had gained 2.1%, Hong Kong’s Hang Seng 2.13% and Japan’s Nikkei 225 0.06%. In Europe, the FTSE 100 had gained 0.82%, France’s CAC 40 0.65% and Germany’s DAX 30 0.92%.
At 10.05am, the JSE all share had gained 1.2% to 54,520.10 points and the top 1.26%. Industrials were up 1.31% and resources 1.44%.
Among rand hedges, AB InBev had gained 1.45% to R1,475, British American Tobacco 1.13% to R566.61 and Richemont 1.7% to R117.21.
Statistics SA is scheduled to publish data on the local food and beverages, land transport and tourism industries for June on Monday.
Source: businesslive.co.za