All data is delayed
See More

JSE stronger on back of ECB statement

Jul 26 2012 18:33
I-Net Bridge
Johannesburg - The JSE saw a rally in late trade on Thursday after the European Central Bank’s president Mario Draghi said the central bank “would do whatever it takes to protect the euro”.

“This announcement calmed concerns about Greece dropping out of the eurozone and we saw energetic buying into the euro and commodities‚” said Devin Shutte‚ market analyst at stockbrokerage Newstrading.

“The US came out with good data flashes with the number of US workers filing for unemployment much better than expected and positive durable goods order numbers‚ which helped keep sentiment bouyant. Markets are trading from one day to the next .. the ECB have not really said anything concrete‚ they have yet to make a concrete announcement‚” he said.

US durable goods orders for June rose 1.6%‚ beating views‚ as aircraft sales surged and the number of US workers filing for unemployment benefits fell for the fourth time in five weeks‚ suggesting the sluggish labour market was gaining steam. Initial jobless claims fell by 35‚000 to a seasonally adjusted 353‚000 in the week ended July 21‚far lower than economists' forecast of 380‚000 claims.

Europe's top central banker sparked a global rally in stocks after reassuring investors the continent's central bank would be vigilant about holding together the eurozone. ECB President Mario Draghi also indicated that the central bank may be ready to buy government bonds or embark on other measures to drive sovereign borrowing costs down as long as its actions remained within its mandate‚ Dow Jones Newswires reported.

The JSE All Share [JSE:J203] index closed 0.64% higher at 34 288.98 points‚ while the Dow Jones Industrial Index was trading up 1.44% at 12 859.13 points.

Local big movers were Impala Platinum‚ up 267 cents‚ or 2.13%‚ at R128.00; Lonmin adding R2.39‚ or 2.72%‚ to R90.10 and Exxaro up R5.43‚ or 3‚33%‚ at R168.50.
jse  |  markets  |  stocks



Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're Talking About...

Savings Month

It's never too late to start saving. Visit our special issue and add your voice.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The proposal to nationalise SARB will

Previous results · Suggest a vote