Caution becalms stocks

SOUTH African stocks drifted sideways in thin trade on Friday, as investors remained cautious due to uncertainty over when the US Federal Reserve could start scaling back its stimulus programme.

The JSE Top 40 index fell 0.29% to 40 169. The All Share index gave up 0.18% to 44 976.

Standard Bank fell 1.1% to R120.65, as investors shrugged off news that a legal panel had overturned a $52-million court sanction levied against Africa’s largest bank last year.

Trade was thin, as many investors were reluctant to take big bets with Wall Street trading shortened by the Thanksgiving holiday. Advancers outnumbered decliners by 183 to 135 as 152 million shares changed hands.

A major index of world equities rose almost to a six-year high on Friday, helped by gains in US stocks, on faith in an improving global economy and support from central banks, while US crude oil rebounded from recent declines.

The US stock market rose in light trading in an abbreviated session after Thursday’s Thanksgiving holiday. The S&P 500 has gained 27% so far this year, with the traditionally strong month of December just begun.

Retail stocks were in focus on the traditionally busy shopping day for US stores known as Black Friday.

The MSCI All-World index gained 0.25% to 402.90, hitting a level not seen since January 2 2008. Oil rallied, putting Brent crude on target for its biggest monthly gain since August. Brent rose 40c to $111.26.

Prices for US Treasuries dipped slightly in subdued trading, with investors looking ahead to data next week.

The Dow Jones industrial average rose 58.92 points, or 0.37%, at 16 156.25. The S&P 500 index was up 5.58 points, or 0.31%, at 1 812.81. The Nasdaq Composite Index was up 21.25 points, or 0.53%, at 4 066.

In the currency market, the euro rose against the dollar to $1.3614. Gold rose 1.3% to $1 254/oz. —