JSE firms as North Korea tension eases

THE JSE closed in positive territory yesterday‚ as global risk assets were buoyed by signals that diplomacy would come to the fore in the stand-off between North Korea and the US.

Global equity markets were hit by risk-off sentiment from Wednesday‚ after a back-and-forth between Pyongyang and US President Donald Trump subdued investors.

Analysts expect geopolitical issues to predominate this week‚ amid a lack of local data‚ while the ANC top six continued a meeting that could precipitate another cabinet reshuffle.

The all-share closed 0.56% higher at 55 465.7 points and the Top 40 was up 0.7%.

Industrials added 0.82%‚ banks 0.69% and resources 0.42%.

The platinum index lost 1.8% and food and drug retailers 0.65%.

The global bull market remained sceptical‚ and although a correction from lofty heights was possible‚ another major bear market was unlikely‚ Old Mutual Multi-Managers analysts Dave Mohr and Izak Odendaal said.

Global economic growth was steady‚ interest rates benign‚ inflation low and household debt was decreasing‚ the analysts said.

Momentum SP Reid securities analysts said some local indices were in overbought territory last week‚ and profit-taking in short-term positions had been an appropriate response.

Industrial counters had exhibited a reversal last week‚ and while very short-term technical improvements were likely in the next session or two‚ a further deterioration in the sector was likely‚ they said.