Broad-based gains for JSE

The JSE posted broad-based gains on Wednesday‚ but closed well off its intraday high‚ fuelled by strong risk-on global trade as a result of the US midterm elections.

Global markets have sighed with relief that the election passed as expected‚ with investors finding reasons to push higher‚ despite the possibility of legislative gridlock in the US.

Gold miners were the big losers‚ as the rand pushed below the psychologically important R14 to the dollar level.

The all share rose 0.46% to 54‚700.6 points and the top 40 0.36%. General retailers added 3.06% and banks 2.3%. Gold miners lost 2.06%. Analysts expect market focus to shift back to issues of economic fundamentals‚ as well as those of the US-China trade conflict.

The JSE has recovered strongly so far in November‚ after a dismal performance in September and October.

This correction was expected to continue‚ and the bourse should test the 56‚000-points level‚ Nedbank Corporate and Investment Banking strategists Neels Heyneke and Mehul Daya said.

Global exchanges were buoyant‚ with US markets opening firmly higher after the midterm elections.

Trade relations with China are again in the spotlight‚ with focus also on the US Federal Reserve policy announcement on Thursday. –