JSE gains as global markets recover from Yellen’s comments
The JSE tracked firmer global markets yesterday as investors’ jitters about rising inflation in the US were eased.
The local bourse broke a four-day losing streak, gaining the most in more than a month, with miners and banks performing best on the day.
The JSE all share gained 1.77% to 67,346 points and the top 40 2.02%.
Industrial metals rose 3.88%, banks 2.70%, resources 2.55%, financials 2.31%, retailers 1.77% and industrials 1.26%.
Anglo American led the gains in the industrial metals sector, rising the most in five weeks, up 4.20% to R647.04. BHP added 3.77% to R458.30, Glencore 3.03% to R61.53, African Rainbow Minerals 1.83% to R280.03 and Kumba Iron Ore 1.49% to R662.31.
Shares in MTN, Africa’s largest mobile operator, rose the most in more than a month after the company said it was well on its way to separating its fintech business estimated to be worth more than R70bn — by early 2022.
The group CEO said the fintech separation project
“is progressing well” and that he “anticipates it will be concluded before the first quarter of 2022”.
The company’s share price rose 11.39% to R98.90.
Global equities are regaining some of Tuesday’s tech-led selloff after US treasury secretary Janet Yellen clarified her comments on interest rates.
After she said that rates may need to rise to stop the US economy from overheating, she later clarified her remarks, saying she is not predicting or recommending rate hikes.
Oanda market analyst Sophie Griffiths said: “Equities are firming after steep, tech-led losses in the previous session. Investors sold out of highgrowth tech stocks on the Yellen-inspired expectation of higher interest rates. Yesterday’s moves proved the rotation out of growth and into value still has room to run.”