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Johannesburg - Equity markets welcomed the “bad news is good news” notion with stalling growth in the world’s largest economy buoying local shares and lifting the JSE all share to close 1.20% higher at 38 946.07.
The US Commerce department cut its growth forecast for the US economy to 1.8%‚ compared with a previous estimate of 2.4% sending signals to world markets that the possibility of tapering monetary easing could be ruled out for this year at least.
European shares extended their rallies on the day with the FTSE 100 adding 1.21% and the Paris CAC 40 jumping 2.11% by 16.48. US stocks were up in early trade with the Dow adding 0.80% by the same time.
On the JSE‚ banking shares climbed 3.46% and financials were up 2.21% as investor demand for defensive counters gained traction.
“The real story is that of a recovery of quality in defensive counters‚” said Gary Booysen‚ trader at Vunani Private Clients.
“Investors are buying more defensive shares as they are nervous‚ which has been reflected in the recent volatility we’ve seen with the market down almost 9% this month‚" he said.
Ongoing pressure in the mining sector remained, with the gold mining index tumbling 4.61% and general resources falling 2.13%.
The gold price continued its slide and by 17:00 had relinquished 3.36% to $1 233.95 an ounce.
Among individual shares on the JSE, Anglo American [JSE:AGL] dropped 3.42% to R195.50‚ BHP Billiton [JSE:BIL] gave up 1.71% to R259.70 and Sasol [JSE:SOL] was down 1.45% to R412.77.
Kumba Iron Ore [JSE:KIO] relinquished 4.50% to R439.25 and ArcelorMittal [JSE:ACL] was down 3.34% to R31.27.
Standard Bank [JSE:SBK] rallied 3.75% to R110.35‚ Absa [JSE:ASA] climbed 4.26% to R147 and African Bank [JSE:ABL] reversed Tuesday’s losses‚ adding 2.29% to R15.65.
Financial counter Discovery [JS:DSY] jumped 4.04% to R81.34 with Sanlam [JSE:SLM] also higher‚ adding 3.29% to R44.62
In the gold mining space‚ Anglogold Ashanti [JSE:ANG] plummeted 5.38% to R133.13‚ Gold Fields [JSE:GFI] dropped 4.13% to R48.25 and Harmony [JSE:HAR] declined 2.56% to R33.82.
Platinum miner Lonmin [JSE:LON] said on Wednesday that it had granted the Association of Mineworkers and Construction Union’s (Amcu) request to postpone arbitration talks regarding the ongoing union recognition dispute to the July 29.
The company’s share price fell 2.40% to R39.46.
Retailers had a good day with Mr Price [JSE:MPC] surging 5.26% to R130‚ Shoprite [JSE:SHP] adding 3.31% to R182.21 and Massmart [JSE:MSM] rising 3.36% to R177.78.
The US Commerce department cut its growth forecast for the US economy to 1.8%‚ compared with a previous estimate of 2.4% sending signals to world markets that the possibility of tapering monetary easing could be ruled out for this year at least.
European shares extended their rallies on the day with the FTSE 100 adding 1.21% and the Paris CAC 40 jumping 2.11% by 16.48. US stocks were up in early trade with the Dow adding 0.80% by the same time.
On the JSE‚ banking shares climbed 3.46% and financials were up 2.21% as investor demand for defensive counters gained traction.
“The real story is that of a recovery of quality in defensive counters‚” said Gary Booysen‚ trader at Vunani Private Clients.
“Investors are buying more defensive shares as they are nervous‚ which has been reflected in the recent volatility we’ve seen with the market down almost 9% this month‚" he said.
Ongoing pressure in the mining sector remained, with the gold mining index tumbling 4.61% and general resources falling 2.13%.
The gold price continued its slide and by 17:00 had relinquished 3.36% to $1 233.95 an ounce.
Among individual shares on the JSE, Anglo American [JSE:AGL] dropped 3.42% to R195.50‚ BHP Billiton [JSE:BIL] gave up 1.71% to R259.70 and Sasol [JSE:SOL] was down 1.45% to R412.77.
Kumba Iron Ore [JSE:KIO] relinquished 4.50% to R439.25 and ArcelorMittal [JSE:ACL] was down 3.34% to R31.27.
Standard Bank [JSE:SBK] rallied 3.75% to R110.35‚ Absa [JSE:ASA] climbed 4.26% to R147 and African Bank [JSE:ABL] reversed Tuesday’s losses‚ adding 2.29% to R15.65.
Financial counter Discovery [JS:DSY] jumped 4.04% to R81.34 with Sanlam [JSE:SLM] also higher‚ adding 3.29% to R44.62
In the gold mining space‚ Anglogold Ashanti [JSE:ANG] plummeted 5.38% to R133.13‚ Gold Fields [JSE:GFI] dropped 4.13% to R48.25 and Harmony [JSE:HAR] declined 2.56% to R33.82.
Platinum miner Lonmin [JSE:LON] said on Wednesday that it had granted the Association of Mineworkers and Construction Union’s (Amcu) request to postpone arbitration talks regarding the ongoing union recognition dispute to the July 29.
The company’s share price fell 2.40% to R39.46.
Retailers had a good day with Mr Price [JSE:MPC] surging 5.26% to R130‚ Shoprite [JSE:SHP] adding 3.31% to R182.21 and Massmart [JSE:MSM] rising 3.36% to R177.78.
