JSE rebounds slightly after tanking in tough week

SOUTH Africa’s main stock index ended a bruising week with its biggest daily percentage gain since January 21 as a rally in commodity prices buoyed mining shares, while the rand was slightly weaker.

The blue-chip JSE Top-40 index rallied 2.66 percent to 43 119, the biggest one-day gain in three weeks, while the broader Allshare index gained 2.48 percent to 48 589.

Both indices are down more than 3 per- cent, however, in a week punctuated by fears of global economic slowdown after comments by the head of the US Federal Reserve were taken to mean further interest rate hikes are unlikely in the near term.

On the forex market, the rand gave up its earlier gains as better-than-expected US retail data pushed the greenback up, backing the alternative possibility of the Fed continuing to raise rates this year.

By 1531 GMT the rand had slipped 0.36 percent to 15.8565 per dollar.

Bonds strengthened, with the benchmark paper due in 2026 shedding 1 basis point to 9.215 percent.

On the bourse, mining shares were in demand as metal prices such as copper cruised higher, with Anglo American rising 14.8 percent to R82.47 and BHP Billiton climbing 7 percent to R156.02. – Reuters