Stronger rand lifts JSE to new high

A firmer rand, stronger underlying commodity prices, and continued momentum on global markets helped push the JSE further into record territory on Wednesday, with the bourse now in sight of 60,000 points.

A firmer rand, stronger underlying commodity prices and continued momentum on global markets helped push the JSE further into record territory on Wednesday, with the bourse now in sight of 60,000 points.

The JSE hit an intraday best of 59,787, with record highs for all three major US equity indices and the German DAX.

Markets have continued to be buoyed by recent positive global data releases and solid corporate earnings results.

On Wednesday, figures showed a rebound in US private sector employment. There were also upbeat manufacturing data from China and a rally in oil prices. Higher oil prices are generally supportive of local miners. Locally, the resources sector led the gains, with Assore jumping 4.04%, to R321.73 and Anglo American 4.01%, to R275.71.

The all share added 0.91%, to 59,5147.1 points and the top 40 0.93%. Resources gained 2.67%, gold miners 2.22% and general retailers, 1.42%.

The day began auspiciously, with Asian markets lifted by the Nikkei, which jumped 1.86% to a 21-year high. Markets were focused on the US Federal Reserve’s policy meeting for indications on future monetary tightening‚ FxPro analysts said.

On Thursday, markets will digest interest rate decisions by the Fed and the Bank of England as well as US President Donald Trump’s pick for a successor to Fed chairwoman Janet Yellen.