JSE follows Wall Street

THE JSE followed a strong opening on Wall Street yesterday, on the eve of the US debt-ceiling deadline‚ as market participants were hopeful that a deal to raise the world’s biggest economy’s borrowing limit was imminent.

At 5pm‚ the JSE all share was up 0.27% at 44‚418.01 points, with the blue-chip top 40 index adding 0.21%.

The banking index was the biggest beneficiary of the day’s gains — ending up 1.84% at a new high, due to a stronger rand.

The gold index, which was the second-best-performing index after banks, rose 1.09%, despite a weaker bullion price.

Sasfin Securities portfolio manager Nicholas Sorour said hopes of a US resolution helped lift the market back to record territory.

The highest level on record for the all share index is 44‚601.69 points‚ which it reached on September 26.

“We should know by midnight US time on Thursday, which is 6am South African time on Friday, if America has increased their borrowing limit or not,” Mr Sorour said.

According to Dow Jones Newswires‚ US stocks shot higher on hopes that legislators would cobble together a compromise before a key deadline in Washington’s debtlimit standoff. “If they don’t raise the limit, the US will officially no longer be allowed to borrow any more money and will then encounter some difficulty meeting some of its obligations,” Mr Sorour said.

Among individual shares, Kumba Iron Ore (KIO) added 2.99% to R482, while Exxaro (EXX) lost 1.53% to R160.80.

Richemont (CFR) lost 2.02% to R98.22 following losses in Moet Hennessy Louis Vuitton (LVMH), the world’s biggest luxury goods maker, which yesterday posted a slowdown in third-quarter sales.

Standard Bank (SBK) led gains in the banking sector, lifting 2.49% to R127.50 to close at a record high.

Nedbank (NED) added 2.01% to R212.47 and Barclays Africa (BGA) climbed 2.10% to R157.49.

Retail counters saw Clicks (CLS) rise 2.12% to R57.70, The Foschini Group (TFG) gain 2.30% to R117.19, Mr Price (MPC) add 2.42% to R148 and Shoprite (SHP) rise 2.01% to R175.

Datatec (DTC) slumped 4.02% to R57.59 after the group reported a decline in profit in the six months to August. It said profit before tax was $57.7m‚ from $60.4m a year ago.

Telkom (TKG) fared worst in telecoms sector, falling 3.46% to R27.60, while MTN (MTN) added 1.58% to R202.90.