Positive data a shot in arm for JSE
Share volume
The JSE closed firmer on Thursday thanks to positive local economic data, and fresh hopes for the US fiscal stimulus package.
US House of Representatives speaker Nancy Pelosi and US treasury secretary Steven Mnuchin expressed hope for a breakthrough in stimulus talks. Mnuchin said agreement was reached on direct payment to Americans. This cleared a significant hurdle in moving forward with more fiscal stimulus to combat Covid-19 s effects
’
on the world s biggest economy.
’
The prospect of a new coronavirus
“
stimulus deal was a source of support to risk assets,” said FXTM chief market strategist Hussein Sayed. Mnuchin
“
said on Wednesday he was hopeful about striking a deal with the Democrats on a new package, and that s likely to be the most important
’
factor for markets in the days ahead.”
The JSE all share firmed 0.34% to 54,446.78 points and the top 40 0.23%. Financials gained 0.99%, the gold mining index 0.98%, banks 0.95% and industrials 0.83%. Platinum miners lost 1.27% and resources 0.66%.
The Dow Jones industrial average was last seen up 0.2% to 27,835.97 points. In Europe, the FTSE 100 gained 0.24% and France s CAC 40 0.34%,
’
while Germany s DAX 30 lost 0.31%.
’
Investor sentiment was also lifted by local economic data. The Absa purchasing managers index (PMI)
’
showed steady recovery in manufacturing business conditions for September, with the move to level 1 of the lockdown regulations in the middle of the month likely to have driven improvements in the sector.
Data issued on Thursday with Stellenbosch University s Bureau for Eco
’ nomic Research showed the index rose to a 21-year high, reaching 58.3 points. But Absa cautioned that this did not mean actual production had bounced back to prepandemic levels. The PMI s improvement, up from
’
August s 57.3, was better than expecta
’
tions for 55.5 points according to a Bloomberg poll. The PMI has stayed in positive territory for five months running since the economy began opening up slowly after the hard lockdown for all of April.
The rand gained for the fourth day running, reaching an intra-day best of R16.5376, according to Infront data. At 5.06pm, the rand was 0.35% firmer at R16.6438/$, 0.26% at R19.5419/€ and 0.77% at R21.4274/£. The euro had gained 0.2% to $1.1744.
Gold rose 1.19% to $1,907.93/oz and platinum 1.56% to $901.38. Brent crude dropped 4.84% to $40.08 a barrel.