STOCKS AND MARKETS

All the movers and shakers on the JSE |

THE JSE was higher yesterday, taking its cue from global indices as both emerging and developed market bourses rose on strong US jobs data and firmer crude oil prices.

The all share index closed up 1.54 percent to 54 617.19 points while the Top40 index was up 1.49 percent to end at 50 309.77 points.

The rally was broad based with all major sector indices – banks, resources, mining and industrial – showing strong gains.

The rand firmed after the country recorded a surprise current account surplus and demand for emerging market currencies was boosted by the jobs data in the US that encouraged risk-taking.

At 5.45pm the rand was 0.57 percent firmer at R16.96 to the dollar, breaking through the key R17 technical resistance level for the first time since June 16, as it rallied to a three-week best in a risk-on session that lifted emerging and commodity currencies.

The advance, which carried the currency to a session-best R16.8750, brought gains in the past two sessions to more than 2 percent, although the outlook remains fragile following weak local economic growth data and a resurgence in Covid-19 infections.

On the day, SA recorded its first current account surplus in 17 years in the first quarter of 2020, a surplus of 1.3 percent of gross domestic product from a deficit of 1.3 percent, as the trade balance more than doubled.

That added to cheer for emerging currencies after US nonfarm payrolls increased by their most since 1939 and comments from the US Federal Reserve indicating a continuation of its massive asset-buying programme, which saw the greenback slide.

Bonds were slightly firmer, with the yield on the benchmark 2030 government issue down 2 basis points to 9.25 percent. I Reuters