JSE tracks European bourses to close firmer

THE JSE closed higher yesterday for the first time in four days‚ as the market shrugged off weaker Chinese markets‚ instead tracking firmer European bourses.

A softer opening on the Dow had little effect on the local market‚ with resources rebounding from historical lows and rand hedges and industrials receiving support.

Platinum and gold stocks‚ however‚ were down.

The market also paid little attention to the Reserve Bank’s decision to keep rates unchanged‚ as this was widely expected.

Barclays Research said European risky assets were firmer on the day‚ despite the equity sell-off in Asia.

“There are various reasons for this divergence. First‚ manufacturing confidence [the flash Caixin pur- chasing managers index] dropped to a new low in China. Second‚ European equities are bouncing following a sharp drop yesterday driven by the plunge in auto sector stocks.

“Third‚ flash euro area PMIs for September came in broadly in line with expectations and remain firmly above the 50 expansion level despite global worries.”

At the JSE’s close the Dow was 0.03% down‚ while the FTSE 100 had gained just more than 2%. The Paris CAC 40 was 0.81% higher and the DAX was up by 1.18%. Earlier‚ the Shanghai composite had dropped 2.19% and the Hang Seng was 2.26% lower.

The overall sentiment on the JSE remained bearish‚ Bank of America Merrill Lynch said in its latest fund manager survey.

At 5pm, the all-share closed 1.06% higher at 50 381.60 points and the blue-chip top 40 was 1.21% firmer. Industrials rose 1.16% and resources ended 0.99% up. Platinums lost 3% and the gold index closed 1.55% lower.