Mboweni Budget gives market sentiment a lift

JOHANNESBURG – STOCKS rose the highest this year yesterday as the JSE benchmark index breached the 67 000 points mark again buoyed by mining and resources stocks following a better-than-expected national budget.

The JSE All Share Index advanced 1.94 percent to around 67 483 points after Finance Minister Tito Mboweni’s Budget speech generated positive sentiment and lifted the markets.

The mining index rose 5.47 percent to 66 960 points and resources gained 5.54 percent to 70 371 points, while banks lifted slightly and general retailers stocks were in the red.

Schroders’ senior emerging markets economist David Rees said the structural reforms in the Budget could improve public finances and inspire returns to domestic assets.

“A more sustainable way to improve the public finances would be for the government to press ahead with macroeconomic reforms to raise economic growth by tackling South Africa’s long-standing problems of low national savings and investment rates,” Rees said.