MARKET WRAP: JSE in sight of 60,000 points after broad-based gains

The JSE’s winning run continued on Monday, with the bourse seeing broad-based gains, as global stocks pushed higher due to a combination of additional Chinese stimulus and dovish US Federal Reserve testimony.

The all share rose 1.46% to 59,655.6 points and the top 40 1.54%. It last breached 60,000 points in February.

Banks jumped 3.2%, gold miners 2.76%, resources 2.04% and food and drug retailers 1.96%.

US markets continued their push into record territory, including the tech-heavy Nasdaq, which breached 8,000 points for the first time. Most global markets were also positive, given a boost from comments by US Federal Reserve chair Jerome Powell that the bank will stick to its policy of only gradually raising interest rates.

The rand was initially under some mild pressure, however, as the Turkish lira slipped against the dollar, as markets in that country resumed trading after a week of public holidays. It recovered, however, soon after the JSE’s close.

Gains on the bourse were broad-based, with only the property index failing to be buoyed by the positive mood on global markets. The Chinese government on Friday increased its economic stimulus, saying it would further boost infrastructure spending. That should feed through into higher commodity prices, and implied that markets should expect China to continue stimulating its economy to avoid economic slowing by more than desired, said Rand Merchant Bank analyst Kim Silberman.

Diversified miner Anglo American gained 2.85% to R296.22, BHP 2.16% to R309.99 and Glencore 1.18% to R59.33.

Assore gained 4.06% to R308.05.

Nedbank jumped 3.64% to R280.22, Absa 3.53% to R166.43 and Standard Bank 3.51% to R193.25.

Sea Harvest fell 2.33% to R14.65, ahead of its interim results to end-June on Tuesday. The group said previously HEPS was expected to decline by as much as 13%.

Advanced Health lost 4.44% to 43c, after earlier warning its loss per share was expected to increase as much as 35% in the year to end-June. Its results are expected on Thursday.

Super Group surged 6.94% to R36.36, after earlier reporting revenue growth of 19% to R35.7bn in the year to end-June.

At 5.30pm, the Dow more than 1% to 26,062 points, while both the Nasdaq and S&P 500 had reached record highs. In Europe, the DAX 30 was up 1.07% and the CAC 40 0.89%.

At the same time, platinum had firmed 1.73% to $803.66 an ounce and gold 0.35% to $1,209.85.

The top 40 Alsi futures index added 1.76% to 53,525 points. The number of contracts traded was 28,323 from Friday’s 25,696.