JSE gains on US interest rate prospects

STOCKS benefited from the prospect of US interest rates staying on hold for longer, with the positive sentiment pushing shares on the JSE into the black yesterday.

The blue chip Top40 index was up 1.16 percent to 47 162.94 points, while the broader all share index rose 0.95 percent to 52 565.42 points.

“Investors are willing to put their money into riskier assets, and they like some of the stocks on our market,” said Mark Loubser, fund manager as Independent Securities.

Resource giant Anglo American jumped 11.31 percent to R137.47, while rival BHP Billiton rallied 4.97 per- cent to R229.69. Lonmin soared 27.34 percent to R6.94, its steepest advance since August 2008.

MTN and Sasol, two favourites among international investors, were up 3.03 percent to R186.90 and 3.81 percent to R434.40, respectively.

Old Mutual gained 1.79 percent to R42.55, rising for the sixth day.

Sovereign Food Investments closed 2.55 percent higher at R8.46, after saying the purchase of Tystroom’s Hartebeespoort abattoir from Quantum Foods was now unconditional.

“Markets are very volatile and they react to the upside quite quickly. With the Fed possibly delaying the hike, sentiment has definitely swung back to positive,” Loubser said.