JSE closes up after scaling new high

Johannesburg - The JSE's All Share [JSE:J203] index closed above 34 000 for the first time in its 17-year history on Thursday, after news that the US Federal Reserve will continue to support economic growth lifted stocks and commodities around the world.

The All-share closed up 1.3% at 34 065.49, its highest finish since the index was launched in June 1995.
 
The benchmark Top 40 - (Tradeable) [JSE:J200] index rose 1.5% to 30 508.85, its highest close since May 2008.

The Federal Reserve’s commitment to ease money to help the US economic recovery lifted US and European stocks, oil and gold but spurred selling in the dollar, knocking it to a five-week low against major currencies.

Upbeat US corporate results and stronger-than-expected data on manufacturing also boosted appetite for equities.

However, fears of a messy Greek debt default limited gains for the euro and growth-orientated assets.

“Last night’s message from the Fed will be supportive for a little while,” said Arnaud Scarpaci, a fund manager at Agilis Gestion. “We just need to get the Greek debt deal out of the way so we can chase the market higher.”

Greek media reported that Greece’s private creditors were willing to lower their “final offer” of a 4% interest rate on new Greek bonds in order to clinch a deal in time to avert an unruly default.

Reports of progress in the Greek debt talks added to earlier optimism kindled from the Fed, which on Wednesday announced it would likely keep interest rates near zero until at least late 2014, some 18 months later than it had suggested last year.