JSE set for another blockbuster day
The JSE is likely to have another blockbuster session on Thursday, a day after the all share index surged the most since the early days of the Covid-19 pandemic, demonstrating the erratic behaviour of the market.
The local share market will take its cue from Asia where technology stocks rallied for the second consecutive session after China boosted market confidence by pledging to ease its regulatory regime.
Hong Kong’s Hang Seng leapt another 6% on Thursday, led by technology stocks, adding to a 9% gain in the previous session.
The all share jumped 4% on Wednesday, led by big industrial stocks in particular. The banking index rose its highest level since March 2018. But resources unperformed in line with commodity prices, which have come off the boil.
Brent crude was just below $100 a barrel, after pushing to $139 a barrel just more than a week ago, the highest level in 14 years.
The rand was relatively steady in early trade, after strengthening just more than 1% late on Wednesday to break below the psychological level of R15/$, boosted by global risk-on appetite. The rand changed hands to the dollar at R14.91.
As widely expected, the US Federal Reserve hiked interest rates by 25 basis points, its first increase in three years, and signalled six more increases by year-end, saying the US economy was strong enough to absorb the tighter monetary policy.
The market reaction was sanguine, suggesting that the degree of potential increases has already been discounted.
Source: businesslive.co.za
