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Johannesburg - It is amazing how much sentiment can change on the markets in only two weeks.
At midday on Monday the JSE All-Share index was trading above 47 000 again and is now eyeing the previous record, the rand was trading close to its highest level in four weeks while gold hit a three-and-a-half month peak on Monday morning.
It’s all due to a remarkable improvement in the sentiment towards emerging markets the last week or two.
It was only two weeks ago that the JSE suffered its longest losing period since 2004, when the index suffered eight days of consecutive losses to trade at 44 452, almost 5.5% lower than Monday morning.
At midday the All-share index traded 478,02 points or 1.03% higher at 47 107 and the Top 40 index was on 41 549, which is 455,97 points or 1.08% higher than Friday. The biggest winner on Monday morning was the industrial index, which gained 1.41% or 745,42 points to trade at 53 794. Trade was limited as the American markets are closed for a public holiday.
The rand also extended the gains made late last week and was trading close to its highest level in nearly four weeks, as the dollar struggles and sentiment towards emerging markets improves.
The rand was at R10.859 at midday, in line with its New York close on Friday, the second consecutive session that ended above the key R11 mark.
The dollar fell to six-week lows against a basket of major currencies on Monday, dragged down by data released on Friday that showed US manufacturing output unexpectedly fell in January due to bad weather.
Gold hit a three-and-a-half month peak on Monday as fears over US economic growth and a weaker dollar added to the metal’s safe haven appeal. Gold traded at $1 325.10 at lunchtime, 0.5% higher than Friday’s close.
Gold is up 10% this year after a 28% drop in 2013, while silver has gained 12%.
Rand Merchant Bank said in a note that this was now the third week since the emerging market panic forced the emergency rate hike in Turkey. Since then‚ confidence has slowly returned to the markets.
“Foreign investors have also slowly returned. Locally‚ we’ve seen decent buying of bonds and equities. Confidence will continue to build as there are no fresh shocks‚” RMB said.
Last week the MSCI Emerging Markets index added 1.2% to 957,31, the highest gain in five months.
Among individual shares on the JSE Naspers‚ the biggest constituent of the industrial index‚ was up 4 885c or 4.01% in morning trade, reaching a new high of R1 2614.
Among retailers‚ Woolworths was 118c or 1.96% stronger, and stocks were trading at R61.48 following positive trading results released last week.
- Fin24
At midday on Monday the JSE All-Share index was trading above 47 000 again and is now eyeing the previous record, the rand was trading close to its highest level in four weeks while gold hit a three-and-a-half month peak on Monday morning.
It’s all due to a remarkable improvement in the sentiment towards emerging markets the last week or two.
It was only two weeks ago that the JSE suffered its longest losing period since 2004, when the index suffered eight days of consecutive losses to trade at 44 452, almost 5.5% lower than Monday morning.
At midday the All-share index traded 478,02 points or 1.03% higher at 47 107 and the Top 40 index was on 41 549, which is 455,97 points or 1.08% higher than Friday. The biggest winner on Monday morning was the industrial index, which gained 1.41% or 745,42 points to trade at 53 794. Trade was limited as the American markets are closed for a public holiday.
The rand also extended the gains made late last week and was trading close to its highest level in nearly four weeks, as the dollar struggles and sentiment towards emerging markets improves.
The rand was at R10.859 at midday, in line with its New York close on Friday, the second consecutive session that ended above the key R11 mark.
The dollar fell to six-week lows against a basket of major currencies on Monday, dragged down by data released on Friday that showed US manufacturing output unexpectedly fell in January due to bad weather.
Gold hit a three-and-a-half month peak on Monday as fears over US economic growth and a weaker dollar added to the metal’s safe haven appeal. Gold traded at $1 325.10 at lunchtime, 0.5% higher than Friday’s close.
Gold is up 10% this year after a 28% drop in 2013, while silver has gained 12%.
Rand Merchant Bank said in a note that this was now the third week since the emerging market panic forced the emergency rate hike in Turkey. Since then‚ confidence has slowly returned to the markets.
“Foreign investors have also slowly returned. Locally‚ we’ve seen decent buying of bonds and equities. Confidence will continue to build as there are no fresh shocks‚” RMB said.
Last week the MSCI Emerging Markets index added 1.2% to 957,31, the highest gain in five months.
Among individual shares on the JSE Naspers‚ the biggest constituent of the industrial index‚ was up 4 885c or 4.01% in morning trade, reaching a new high of R1 2614.
Among retailers‚ Woolworths was 118c or 1.96% stronger, and stocks were trading at R61.48 following positive trading results released last week.
- Fin24
