JSE closes at highest level in weeks

THE JSE share market pushed to its highest closing level in 14 days yesterday‚ benefiting mainly from the industrial and mining sectors‚ as market players looked to the US Federal Reserve policy report for further guidance.

At 5pm‚ the JSE all-share index had gained 0.42% to 35 885.23 points‚ with industrials gaining 0.8% and resources lifting 0.37%‚ while banks were the main laggards‚ losing 1.63%.

Among individual shares on the JSE‚ BHP Billiton lifted 1.25% to R260.91‚ Amplats recovered 2.37% to R427.40‚ while Northam Platinum lost 4.19% to R29.99.

Harmony lifted 1.72% to R69.83 and Exxaro gained 1.01% to R165.65.

Among industrials‚ British American Tobacco gained 1.44% to R426.99‚ and Telkom was up 1.82% to R18.51.

Among banks‚ Standard Bank gave up 1.66% to R104.39 and FirstRand lost 2.78% to R26.59.

European shares were mixed in late trade‚ while the Dow Jones Industrial Average was up 0.12%.

European stocks fell, taking a pause in their sharp three-month rally as investors awaited to see if the US Federal Reserve would unveil further stimulus measures which could further boost appetite for risky assets.

The eurozone’s blue chip Euro STOXX 50 index ended 0.8% lower at 2 543.22 points, retreating from a near-six month high hit in the previous session, while the FTSEurofirst 300 index of top European shares closed 0.2% lower at 1 106.27 points.

After the European closing bell, the Fed launched another aggressive stimulus programme, saying it would buy $40-billion (R333-billion) of mortgage debt per month and continue to purchase assets until the outlook for jobs improved substantially.

“That’s what the market had been expecting,” a Paris-based equity and ETF sales trader said.

Eurozone banking stocks were among the top losers yesterday, trimming recent lofty gains, with Societe Generale down 3.3% and Banco Popolare down 1.8%.

Despite the losses in eurozone stocks, tensions surrounding the zone’s debt crisis further eased, with Italy’s 10-year bond yields falling to their lowest levels in nearly six months to around 5%, down from a peak of 6.6% in late July.

Greece’s ATG index dropped 3.7%, reversing the previous session’s rally on speculation that the indebted country could need a third bailout. – Reuters, I-Net Bridge